Goldman Sachs Upgrades Humana (HUM) to Buy
- Wall Street ends down as megacaps give back gains
- Current S&P 500 valuation is not leaving 'any margin for error' - JPMorgan
- Dow Jones, Nasdaq, S&P 500 weekly preview: Can this rally hold?
- Stocks retreat after rally with jobs data eyed, yields climb
- Alaska Air (ALK) drops 9% on $1.9 billion deal to buy Hawaiian (HA)
Goldman Sachs analyst Nathan Rich upgraded Humana (NYSE: HUM) from Neutral to Buy with a price target of $652.00.
The analyst comments "We see a strengthening earnings outlook as improved competitive positioning in MA has reaccelerated member growth for 2023 and could deliver multiple years of share gains as many peers face Stars headwinds in 2024. We also see an attractive and still underappreciated HC services opportunity, with primary care earnings having potential to outperform guidance given at its Sept. investor day. We are mindful of the notable risk associated with the upcoming RADV ruling. We are 4% above consensus EPS for 2024-2025, reflecting 3% higher member growth and a 2025 primary care EBITDA opportunity of $205mn-$395mn in EBITDA based on our waterfall estimates, above the company’s $100-$200mn outlook in its mid-term guidance, with more of this EBITDA hitting the P&L as WCAS centers come onto the balance sheet. Despite the stock’s outperformance in 2022 (+18% YTD vs. MCO group +13%), the stock trades in-line with its historical median despite higher forward EPS CAGR of 15% vs. its 3-yr. history of 12%."
Shares of Humana closed at $529.99 yesterday.
You May Also Be Interested In
- CFRA Upgrades AutoZone (AZO) to Buy Ahead of Earnings Tuesday
- BMO Capital Starts Block Inc. (SQ) at Outperform, 'Best-in-Class EPS Growth at Scale'
- Morgan Stanley Upgrades East West Bancorp (EWBC) to Overweight, 'High-quality bank at an enticing discount'
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesGoldman Sachs, Earnings
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!