Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com - Raymond (NSE:RYMD) James raised its price target on Humana (NYSE:HUM) to $340 from $315 while maintaining an Outperform rating on the health insurer’s stock. According to InvestingPro data, analysts’ targets for Humana range from $244 to $402, with the stock currently trading at attractive valuation metrics.
The investment firm’s decision follows Humana’s recent investor day, where the company outlined its earnings per share (EPS) targets through 2028. The company, which earned $14.16 per share over the last twelve months and maintains an impressive "GREAT" financial health score according to InvestingPro, has demonstrated consistent profitability.
Raymond James applied a 50/50 scenario analysis to Humana’s ambitious $40 EPS target for 2028, balancing it against a more conservative estimate of approximately $26 EPS if the company maintains its current Star ratings position with 25% of members in 4-Star plans.
The firm noted that improving from 25% to 75% of members in 4-star rated plans would contribute approximately $14 to Humana’s EPS in 2028, representing a significant potential upside.
Raymond James believes much of the Star ratings risk is already priced into Humana’s current valuation, with the stock trading at roughly 9 times the conservative $26 EPS estimate, while acknowledging potential risks to the company’s projected enterprise-wide margin expansion.
In other recent news, Humana Inc . has expanded its climate commitments with a new target aimed at reducing emissions from its investment portfolio. This target, approved by the Science Based Targets initiative, commits Humana to having 67.3% of its listed equity and corporate bond portfolio set SBTi-validated targets by 2029. Additionally, Humana was part of a meeting with major health insurers and U.S. health secretary Robert F. Kennedy Jr., where they pledged to simplify prior authorization processes for medications and medical services. On the financial front, Bernstein reiterated its Outperform rating on Humana, highlighting optimism about the company’s Medicare Advantage outlook and long-term earnings growth projections. Similarly, RBC Capital maintained its Outperform rating and $283 price target, expressing confidence in Humana’s long-term growth strategy despite near-term challenges. TD Cowen also maintained a Hold rating and $268 price target, noting Humana’s strategy to recover Medicare Advantage margins and expand profitability in Medicaid and CenterWell segments. These developments reflect Humana’s focus on long-term stability and growth amid industry challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.