Humana downgraded to Hold from Buy at Jefferies

Jefferies analyst David Windley downgraded Humana to Hold from Buy with a price target of $253, down from $519. The firm says a Medicare Advantage stars appeal is Humana’s biggest factor, by far. The company’s Q3 “is fine,” but Jefferies models an unsuccessful appeal, the analyst tells investors in a research note. This puts even a recovering 2027 earnings per share before that of 2024, Jefferies points out.