Street Calls of the Week
Investing.com - Cantor Fitzgerald has maintained its Neutral rating on Molina Healthcare (NYSE:MOH) with a price target of $210.00. According to InvestingPro data, competitor Humana (NYSE:HUM) currently trades at $290.60, with a market cap of nearly $35 billion and strong financial health metrics.
The research firm noted improvements in Molina’s 2026 Stars ratings, which will affect bonus payments in 2027. These ratings are a key performance metric in the healthcare insurance industry that impacts reimbursement rates.
Molina Healthcare showed progress with its Stars rating improving to 5% from 0% previously, particularly for its Duals-heavy population, which refers to beneficiaries eligible for both Medicare and Medicaid.
The improvement places Molina among several major healthcare insurers seeing positive Stars rating changes, alongside UnitedHealth Group, Elevance Health, and Centene.
Other industry players including Humana and CVS Health experienced slight declines in their Stars ratings for the same period, according to Cantor Fitzgerald’s analysis.
In other recent news, Humana has announced its Medicare Advantage and Medicare Prescription Drug Plan offerings for 2026, emphasizing that over 80% of its Medicare Advantage members will enjoy stable benefits. Wolfe Research has raised its price target for Humana to $313, up from $283, while maintaining an Outperform rating. This adjustment follows Humana’s recent 8K filing and commentary on the 2026 Medicare Advantage Star ratings. Meanwhile, Cantor Fitzgerald has maintained its Neutral rating with a $290 price target, despite Humana facing a $281 million headwind and changes in Indiana Medicaid enrollment requirements.
Raymond James has also reiterated its Outperform rating on Humana with a price target of $340, even after the stock experienced a decline following reports of more challenging cut points for the 2026 Star Ratings. These ratings are crucial as they impact Humana’s ability to regain some of its lost Stars Ratings for 2026. The company’s Medicare plans will be available for selection during the Medicare Annual Election Period from October 15 through December 7. These developments highlight the ongoing adjustments and strategic moves within Humana as it navigates future challenges and opportunities.
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