BUZZ-Mizuho cuts PT on Humana, cites outsized Medicare Advantage growth

Reuters04-08 19:16
BUZZ-Mizuho cuts PT on Humana, cites outsized Medicare Advantage growth

** Brokerage Mizuho cuts price target on health insurer Humana's HUM.N shares to $258 from $310, maintains "outperform" rating

** Says a key debate on HUM is whether the firm's outsized Medicare Advantage growth in 2026 places risk on the adjusted EPS trajectory and margin recovery

** Adds that HUM's membership growth has been driven more by peers pulling back on benefits rather than HUM expanding them

** Humana is one of the largest health insurers offering Medicare Advantage plans for older adults

** While the health insurance sector generally offers solid earnings recovery if utilization stays in check, HUM stands out as one of the most compelling stocks but with the greatest risk if healthcare demand trends accelerate - Mizuho

** Brokerage also introduces 2028 adjusted EPS estimate of $24, which assumes prudent Medicare Advantage margin recovery and recapturing 4+ Star ratings

** HUM down 23% YTD

(Reporting by Sriparna Roy in Bengaluru)

((Sriparna.Roy@thomsonreuters.com;))

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