Humana price target raised to $400 from $355 at Truist

Truist analyst David MacDonald raised the firm’s price target on Humana to $400 from $355 and keeps a Hold rating on the shares as part of a broader research note previewing Q2 results in Healthcare Services. The sector offers “attractive core demand drivers”, ongoing M&A opportunity, and strong relative positioning, and while “ongoing selectivity” remains important, the firm remains bullish on the group’s long-term drivers – demographics, move to value-based care, and site of service redirection – underpinning its solid growth, the analyst tells investors in a research note. For the company, Truist sees margin improvement toward at least 3% over the next few pricing cycles, also anticipating ongoing detail around initiatives to mitigate the more challenging Medicare funding environment.