Humana price target lowered to $470 from $573 at Jefferies

Jefferies analyst David Windley lowered the firm’s price target on Humana to $470 from $573 and keeps a Buy rating on the shares. In 2023, Humana’s Medicare Advantage, or MA, plans had richer benefits on average than peers, which resulted in enrollment growth about twice the industry, while in 2024 Humana expects to grow below the industry rate, yet with MLR pressure, noted the analyst. As Humana strategizes the 2025 bids, management will be under pressure to recover margin, which “almost certainly leans heavily” on benefit reduction and results in another poor enrollment year, contends the analyst, who does not believe a high-teens multiple will hold, “barring an M&A theme revisit.”