BUZZ - Cantor upgrades Humana rating, expects its Medicare profit margin to rebound strongly in 2027
路透社2026/10/07 11:01October 7 - Cantor Fitzgerald has upgraded its rating on health insurance company Humana (HUM.N) from "Neutral" to "Overweight" and raised the target price from $300 to $460. The brokerage increased its 2027 EPS estimate from $15.86 to $17.96 and its 2028 estimate from $25.38 to $28.27, citing increased confidence in HUM's margin performance and quality rating recovery within the Medicare Advantage plan. Cantor expects this week’s upcoming Medicare quality ratings to be positive, and better scores would help HUM secure higher government bonuses in 2028. The brokerage stated that pricing strategies, benefits adjustments, and measures to control medical costs are expected to significantly improve Medicare margins in 2027. It believes that confirmation of HUM's 2027 performance forecast and 2027 membership in line with expectations will be the next potential catalyst following the quality ratings release. Cantor noted that HUM currently trades at 9.9 times management’s midpoint 2028 earnings forecast, compared to a historical average P/E of about 18x. (For the convenience of non-English speakers, Reuters may provide automated translations of its report into multiple languages. Due to possible errors or lack of appropriate context, Reuters does not guarantee the accuracy of translated text and provides automated translations solely for reader convenience. Reuters assumes no responsibility for any damage or loss resulting from the use of automated translation functions.)
October 7 - ** Cantor Fitzgerald upgraded health insurer Humana (HUM.N) from "Neutral" to "Overweight" and raised its price target from $300 to $460
** The brokerage increased its 2027 earnings per share (EPS) estimate from $15.86 to $17.96, and its 2028 estimate from $25.38 to $28.27, citing greater confidence in HUM’s margins and quality rating rebound in the Medicare Advantage program
** Cantor expects the Medicare quality ratings to be announced this week will be positive; higher ratings will help HUM secure higher government bonuses in 2028
** The brokerage said that pricing strategy, benefit adjustments, and medical cost management initiatives are expected to significantly improve Medicare margins in 2027
** It believes confirmation of HUM's 2027 performance forecast and achievement of expected 2027 membership will be the next potential catalyst after the quality ratings are published
** Cantor noted that HUM is currently trading at 9.9 times the midpoint of management's 2028 earnings expectations, while its historical average P/E ratio is about 18 times
(To assist non-English speakers, Reuters has automated translations of its reports into several other languages. As automated translation may contain errors or not fully capture the intended context, Reuters does not guarantee the accuracy of these translations and provides them solely for reader convenience. Reuters accepts no liability for any damage or loss arising from the use of automated translation tools.)
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