Humana price target lowered to $430 from $550 at Stephens

Stephens analyst Scott Fidel lowered the firm’s price target on Humana (HUM) to $430 from $550 and keeps an Overweight rating on the shares. The company’s revised 2024 adjusted EPS outlook of about $16 “reflects a worst-case scenario” given building pressures facing the Medicare Advantage category, including rising utilization, more intense pricing competition, and “a slew of both adverse rate and regulatory pressures from CMS,” the analyst tells investors. If the sharp broad-based spike seen in short-stay inpatient visits as compared to UnitedHealth (UNH) was driven by process issues at Humana, there “could be a self-help opportunity” to correct this in 2024 and drive EPS “back up towards a more acceptable level even before 2025,” the analyst added.