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TD Cowen maintained its Hold rating and $268.00 price target on Humana stock (NYSE:HUM) following the company’s 2025 investor day presentation. According to InvestingPro data, Humana currently trades at $242.55, with analyst targets ranging from $244 to $402, suggesting potential upside. The company maintains a "GREAT" financial health score, holding more cash than debt on its balance sheet. The healthcare insurer outlined its strategy to recover Medicare Advantage margins while expanding profitability in its Medicaid and CenterWell segments.
Humana management expressed confidence in Medicare Advantage remaining an attractive industry despite facing challenges beyond the company’s control. The company emphasized its focus on long-term stability and member retention rather than short-term gains, with 2028 now positioned as the target year for significant improvements in Star ratings and margin expansion. As a prominent player in the Healthcare Providers & Services industry, Humana has demonstrated consistent growth with revenue increasing by 10.09% over the last twelve months. Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and analysis tools.
The company provided a detailed bridge to its 2028 pre-tax earnings, projecting $3.3 billion to $4.4 billion in growth from segment earnings improvements and enterprise operating leverage. This includes $1.0-$1.4 billion from Individual Medicare Advantage earnings growth, $0.3-$0.4 billion from Medicaid and CenterWell, and $0.4-$0.6 billion from other business segments.
Humana also anticipates $1.6-$2.0 billion from enterprise operating leverage by 2028. TD Cowen estimates these projections represent potential 2028 earnings per share of $37-$44, compared to the current consensus estimate of approximately $32.
The analysis is based on TD Cowen’s estimate of $2.7 billion in 2025 pre-tax earnings for Humana, assuming a stable share count and 25% tax rate as the company executes its long-term strategic plan. Currently trading at a P/E ratio of 17.11, Humana has maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns. For comprehensive analysis and Fair Value estimates, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Humana has been the focus of several analyst reports following its Investor Day presentation. The company outlined a strategy to achieve earnings per share (EPS) of $36-44 by 2028, which is significantly higher than current estimates. RBC Capital maintained its Outperform rating with a price target of $283, expressing confidence in Humana’s long-term growth despite short-term challenges. UBS kept a neutral rating and a $285 price target, acknowledging the company’s strong earnings outlook but noting unresolved questions regarding future strategies.
Truist Securities lowered its price target for Humana to $280 from $305, maintaining a Hold rating, while recognizing the company’s growth opportunities in Medicare Advantage and Medicaid. Mizuho (NYSE:MFG) reiterated an Outperform rating with a $316 price target, highlighting Humana’s positive long-term growth strategy and potential for margin recovery by 2028. Despite anticipated challenges in 2026 and 2027, Humana expects Medicare Advantage margins to improve by 2028, with a focus on cost reductions and revenue growth. Overall, analysts appear divided on the stock, with some expressing optimism about Humana’s future growth trajectory, while others remain cautious due to uncertainties in the healthcare market.
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