Credit Suisse Starts Humana (HUM) at Neutral

Credit Suisse initiates coverage on Humana (NYSE: HUM) with a Neutral rating and a price target of $185.00.

Analyst Scott Fidel commented, " We are initiating coverage of Humana with a Neutral rating and $185 target price. Humana's stock at current levels faces potentially binary outcomes. First, we see potential for a binary move to the upside since HUM shares currently trade at a discount relative to the implied current value of the stock based on the merger agreement with Aetna. If the merger is approved on schedule and with an acceptable level of required divestitures, we would see a clear line of sight to HUM shares trading higher and generating strong timeweighted returns. However, we also see similar potential for a binary downside move in HUM shares in a more adverse scenario. First, we believe that if the merger with Aetna was rejected by the regulators, HUM shares would trade down to a much lower stock price. We also believe that Street consensus earnings projections for Humana in 2016-2018 are currently over-optimistic."

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 $175.66 yesterday.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• Humana (HUM) Tops Q1 EPS by 111c; reaffirms adjusted EPS outlook
• ASGN Inc. (ASGN) PT Lowered to $94 at BMO Capital