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Wells Fargo Maintains a 'Market Perform' on Humana (HUM); 2012 Guidance Disappointing, Lowering Valuation Range

February 6, 2012 3:00 PM EST
HUM Hot Sheet
Rating Summary:
    8 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wells Fargo maintains a 'Market Perform' on Humana (NYSE: HUM) price target range cut to $90-$99 from $96-104.

Wells analyst says, "While we believe Medicare Advantage can still grow based on its merits, the acceleration of growth from "baby boomers" turning 65, and relative under-penetration of the market, we are concerned that some potentially negative events are lurking on the horizon in the near-term, which could weigh on the shares. We believe investors will increasingly focus in the near term on 2013 MA rates, RADV audits, federal budget cuts, and Medicare MLR minimums, which could add uncertainty to the market."

"While we are adjusting our quarterly estimates, we are leaving our FY 2012 and 2013 EPS estimates unchanged. (at $8.10 and $9.20, respectively)

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 $90.12 yesterday, with a 52 week range of $57.70-$96.46.


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