Wells Fargo Downgrades Humana (HUM) to Market Perform; More Cautious MA Outlook
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Price: $389.05 +1.06%
Rating Summary:
15 Buy, 19 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo downgraded Humana (NYSE: HUM) from Outperform to Market Perform. Valuation Range: $96-$104.
Wells analyst says, "We are downgrading HUM on a more cautious near-term outlook on Medicare Advantage (MA). While we continue to favor MA longer term on shifting demographics and relative underpenetration of the market, we believe investors will likely shift focus to a few negative near-term events following disclosure of likely good MA membership growth for January. These include 2013 MA rates, sequestration cuts, RADV audits, and 2014 Medicare minimum MLRs, which we expect to cast a cloud over HUM. Also, HUM's silver sneakers program (offered in most of its MA plans) may be viewed as a risk selection tool by regulators and could become a target."
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 $94.94 yesterday.
Wells analyst says, "We are downgrading HUM on a more cautious near-term outlook on Medicare Advantage (MA). While we continue to favor MA longer term on shifting demographics and relative underpenetration of the market, we believe investors will likely shift focus to a few negative near-term events following disclosure of likely good MA membership growth for January. These include 2013 MA rates, sequestration cuts, RADV audits, and 2014 Medicare minimum MLRs, which we expect to cast a cloud over HUM. Also, HUM's silver sneakers program (offered in most of its MA plans) may be viewed as a risk selection tool by regulators and could become a target."
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 $94.94 yesterday.
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