Wolfe Research increased its price target on Humana Inc. to $450 from $400 on Monday, maintaining an Outperform rating as the insurer’s Medicare Advantage margins are poised to expand toward a 3.0% target by 2028.
The firm’s revised outlook reflects growing confidence in Humana’s ability to enhance operational performance and benefit from upcoming regulatory and competitive catalysts. The stock last traded at $378.88, implying an 18.8% upside to Wolfe’s new target and marking an 118.6% gain over the past six months.
Morgan Stanley upgraded Humana from Underweight to Equalweight, citing improving earnings momentum and alignment with the 2028 margin trajectory. Piper Sandler raised its price target to $463 while upgrading the stock to Overweight, shifting its valuation framework to 2028 adjusted earnings per share. Guggenheim maintained a Buy rating with a $471 target, emphasizing margin expansion in the Medicare Advantage segment.
Raymond James, however, downgraded Humana to Market Perform from Outperform, citing near-term uncertainty ahead of the Centers for Medicare & Medicaid Services (CMS) Stars ratings announcement.
Wolfe Research highlighted October as a pivotal month, with CMS set to release the 2027 Stars ratings, third-quarter results, and the Medicare Advantage plan-finder update. These data points will provide comparative insights into Humana’s benefits for 2027 versus 2026 and relative to peers.
Humana also resolved an antitrust litigation with Glenmark Pharmaceuticals’ U.S. unit, agreeing to a $15.28 million settlement, including interest, to address allegations of generic-drug price-fixing. The payment will be disbursed in two installments.
