Jefferies Raises Price Target on Humana (HUM) Due to Higher Retail MA Net Adds
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Price: $380.73 +0.72%
Rating Summary:
15 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
15 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Jefferies is reaffirming its Buy rating on shares of Humana (NYSE: HUM) while raising its price target from $104 to $107.
The company announced on January 6 that Retail MA net adds in 2012 will be slightly higher than its previous guidance range of 145-155 thousand due to higher gross adds. The firm believes management will raise its FY12 EPS guidance during the Q4 conference.
An analyst at Jefferies comments, "We recently met with HUM and UnitedHealth Group's (NYSE: UNH) management teams. Our takeaway was that MCOs were having solid MA/PDP selling seasons even though open enrollment was closing three weeks earlier than seniors were accustomed to. HUM's Friday announcement substantiates our takes from earlier meetings and our analysis."
The firm reports the new outlook is solid new for the company and other MA players such as UNH, Aetna Inc. (NYSE: AET), and CIGNA Corporation (NYSE: CI).
For FY12 and FY13, Jefferies is raising its EPS estimates from $7.95 and $8.82 on HUM to $7.99 and $8.90. Total sales for FY12 and FY13 are forecasted to be $39.56 billion and $43.15 billion.
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 $92.25 yesterday.
The company announced on January 6 that Retail MA net adds in 2012 will be slightly higher than its previous guidance range of 145-155 thousand due to higher gross adds. The firm believes management will raise its FY12 EPS guidance during the Q4 conference.
An analyst at Jefferies comments, "We recently met with HUM and UnitedHealth Group's (NYSE: UNH) management teams. Our takeaway was that MCOs were having solid MA/PDP selling seasons even though open enrollment was closing three weeks earlier than seniors were accustomed to. HUM's Friday announcement substantiates our takes from earlier meetings and our analysis."
The firm reports the new outlook is solid new for the company and other MA players such as UNH, Aetna Inc. (NYSE: AET), and CIGNA Corporation (NYSE: CI).
For FY12 and FY13, Jefferies is raising its EPS estimates from $7.95 and $8.82 on HUM to $7.99 and $8.90. Total sales for FY12 and FY13 are forecasted to be $39.56 billion and $43.15 billion.
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 $92.25 yesterday.
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