Humana upgraded to overweight by Cantor Fitzgerald
Cantor Fitzgerald upgrades health insurer Humana to "overweight" from "neutral" and raises price target to $460 from $300, citing greater confidence in the company's Medicare Advantage profit margins and quality-rating recovery.
Cantor Fitzgerald upgraded health insurer Humana to "overweight" from "neutral" and lifted its price target to $460 from $300. 38, citing greater confidence in HUM's Medicare Advantage profit margins and recovery in quality ratings. Cantor said Medicare quality scores due this week are expected to be positive. It said stronger ratings would help HUM secure higher government bonus payments in 2028.
The firm said pricing, benefit changes and efforts to control medical costs could drive strong Medicare margin improvement in 2027. It added that HUM's 2027 forecast and confirmation that 2027 enrollment is in line with expectations are the next potential catalysts after the quality-score release. 9 times the midpoint of management's 2028 earnings outlook, versus a historical average of about 18 times.