Humana’s (HUM) New Defense Contract Extension Could Be Worth $16.26B

Humana (NYSE:HUM) has received an award with a potential value of $16.26 billion as a top-up to a previously signed contract with a defense health agency. Under the modification, the contract performance period was extended by two one-year periods, beginning January 1.

Humana, a healthcare stock and one of the U.S.’s leading health insurance service providers, will continue delivering healthcare for the East Managed Care Service Contract.

The contract work will be executed across military service component sites, contractor call centers, and within an integrated healthcare provider network throughout the eastern continental U.S.

Is HUM Stock a Buy?

HUM stock is a Strong Buy, going by the consensus ratings on Wall Street. The rating is backed by 15 Buys and one Hold. The average price target of $618.50 represents an upside potential of 28.4% from current levels.

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