Research Alert: CFRA Maintains Hold Rating On Shares Of Humana Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month price target to $215 from $195, a 14.3x multiple of our 2027 EPS estimate (down to $15.07 from $19.34; 2026 estimate down to $9.05 from $13.16), a discount to HUM's five-year historical forward average of 16.8x. We think investor sentiment improved somewhat following a more favorable Medicare Advantage (MA) 2027 rate update (2.48% vs. 0.09% proposal) and indications of supportive reform for Stars Quality ratings, an area of particular interest to HUM given its significant exposure to MA (81% of 2025 premium revenues). Still, the industry is battling rising medical costs due to deferred care and higher levels of medical utilization, including increased levels of outpatient care among seniors, inpatient admissions, Rx volumes, and behavioral health care demand. While we see potential for recovery in 2027 and beyond led by Stars reform and improved MA rates, the significant near-term earnings pressure and ongoing uncertainties support our Hold recommendation at current levels.

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target to $215 from $195, a 14.3x multiple of our 2027 EPS estimate (down to $15.07 from $19.34; 2026 estimate down to $9.05 from $13.16), a discount to HUM's five-year historical forward average of 16.8x. We think investor sentiment improved somewhat following a more favorable Medicare Advantage (MA) 2027 rate update (2.48% vs. 0.09% proposal) and indications of supportive reform for Stars Quality ratings, an area of particular interest to HUM given its significant exposure to MA (81% of 2025 premium revenues). Still, the industry is battling rising medical costs due to deferred care and higher levels of medical utilization, including increased levels of outpatient care among seniors, inpatient admissions, Rx volumes, and behavioral health care demand. While we see potential for recovery in 2027 and beyond led by Stars reform and improved MA rates, the significant near-term earnings pressure and ongoing uncertainties support our Hold recommendation at current levels.