Humana price target lowered to $415 from $507 at RBC Capital

RBC Capital lowered the firm’s price target on Humana to $415 from $507 and keeps an Outperform rating on the shares. The company’s weaker 2024 guidance was “surprising”, but the firm was encouraged to see an “achievable and potentially beatable bar” from Humana management, the analyst tells investors in a research note. RBC adds however that the company’s earnings call did little to quell debate over the source of higher utilization and whether the headwinds are seasonal and transitory, or if they represent a structural shift in utilization patterns that will weigh on Medicare Advantage books across its coverage.