Humana (HUM) Price Target Lowered at Deutsche Bank

Deutsche Bank maintained a Hold rating on Humana (NYSE: HUM) and lowered its price target to $195.00 (from $220.00). Analyst Scott Fidel noted the shifting MCO M&A landscape.

"Our lower PT reflects the shifting MCO M&A landscape given that two of the three most likely acquirers for HUM, namely ANTM (NYSE: ANTM) and CI (NYSE: CI), are likely out of the mix (at least in the near-term) given that the two companies are currently engaged in a potential combination. This would leave AET (NYSE: AET) as the only likely acquirer for HUM which would substantially improve AET’s bargaining position. Moreover, the WSJ has reported that UnitedHealth (NYSE: UNH) may have interest in Aetna," said Fidel.

"Given the recent changes in the M&A picture as it relates to HUM combined with the company’s above-average NT EPS risks, we are adjusting our price target on the stock to $195 from $220. Relative to consensus estimates, our new target multiple reflects a slight premium to ANTM’s current $184/share bid for CI which represents 19.4x the 2016 consensus EPS estimate of $9.49 for CI. We maintain our Hold rating on HUM shares," added the analyst.

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 $189.94 yesterday.

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