Humana (HUM): Guidance OK - UBS

UBS analyst, AJ Rice, reiterated his Neutral rating on shares of Humana (NYSE: HUM) and cut his price target to$170 from $171 but early 2017 commentary suggests the standalone 2017 estimate is OK.

HUM's 2016 guidance reflects a low 4% pre-tax margin in its individual MA business, compared with 3% in 2015. The company expects the pre-tax earnings in its individual MA business to grow Y/Y in 2017, albeit at a slower rate than seen in 2016. The growth next year will be mainly driven by both revenue growth and margin improvement. For an analyst ratings summary and ratings history on Humana click here. For more ratings news on Humana click here.

Shares of Humana closed at $167.42 yesterday.

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