Goldman Sachs analyst Nathan Rich has maintained their bullish stance on HUM stock, giving a Buy rating on April 22.
Nathan Rich has given his Buy rating due to a combination of factors related to Humana’s financial outlook and market positioning. Despite a more conservative recovery projection for margins and earnings per share (EPS) growth in 2025, Rich acknowledges the significant EPS potential from the company achieving its margin target of over 3%, compared to its current break-even status. Moreover, he perceives opportunities for Humana to accelerate EPS growth if healthcare cost trends slow down or if competitors adjust their benefits more than anticipated.
Rich’s analysis also factors in the competitive landscape, where Humana’s strategic responses to benefit reductions and plan exits could result in a larger member attrition rate. Yet, he considers the company’s valuation to be favorable at 15 times his estimated 2025 EPS. This outlook, coupled with Humana’s long-term margin recovery potential and the possibility of further improvements in 2026, supports the Buy rating. Rich’s report suggests a cautious but optimistic view on Humana’s ability to navigate through uncertainties and achieve financial growth.
In another report released on April 22, Jefferies also assigned a Buy rating to the stock with a $381.00 price target.
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Humana (HUM) Company Description:
Humana Inc. is a leading health insurance service provider in the United States. The company, through its Retail division, provides medicare benefits and state-based medicaid contracts, which are marketed on a retail basis to individuals. The Group and Specialty business offers employer group commercial fully-insured medical products and specialty health insurance benefits. Humana offers pharmacy solutions, provider services, home-based services, and clinical programs to the company’s health plan members as well as to third parties through the Healthcare Services segment.
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