Humana (HUM) Update a 'Mixed Bag' - Susquehanna
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Susquehanna analyst Chris Rigg called news today from Humana (NYSE: HUM) at 'Mixed Bag'.
While the upward guidance revision is a positive, the downward revision to the company’s Medicare STAR scores, which will not impact results until 2018, is a substantial negative and more than offsets the upward guidance revision, the analyst said.
"We believe that if HUM cannot successfully mitigate the issue with CMS, it will be at a material enrollment disadvantage relative to its peers," Rigg said. "By way of background, based on the company’s July 31 membership, the percentage of HUM’s membership in 4-Star or higher plans will decline ~46% (0.98 mln members) in 2018, with all other things being equal."
The firm maintained a Neutral rating and price target of $180 on HUM.
Shares of Humana closed at $177.53 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Western Digital (WDC): Analyst Day Preview - Susquehanna
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- UPDATE: Oppenheimer Starts Shopify (SHOP) at Perform
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesSusquehanna International Group of Companies
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!