Humana price target raised to $400 from $370 at Oppenheimer

Oppenheimer analyst Michael Wiederhorn raised the firm’s price target on Humana to $400 from $370 and keeps an Outperform rating on the shares. Despite a post-bid rise in inpatient admissions related to the “two midnight rule,” Humana feels confident in 2025 bids, due largely to other offsetting benefits that emerged post-bids, the firm says. Looking to the longer term, management reiterated its 3.0% margin target, which it still hopes to reach by 2027. Oppenheimer expects Humana to remain in the penalty box for the rest of 2024, as the Street becomes increasingly jittery with 2025. However, the firm would be opportunistic long-term buyers of Humana on any weakness, as it does believe it will ultimately unlock the latent earnings potential.