Morgan Stanley Downgrades Humana (HUM) to Underweight

Morgan Stanley analyst Erin Wright downgraded Humana (NYSE: HUM) from Equalweight to Underweight with a price target of $174.00 (from $262.00).

The analyst comments: "While we continue to view the long term prospects of Medicare Advantage (MA) as favorable, where HUM is essentially a pure-play, we view HUM's 2026 bid strategy alongside incremental policy risk on the back of an unfavorable Advance Rate Notice (see note here) may slow HUM's progress on its multi-year turnaround strategy. We are lowering our Price Target to $174 (from $262), 9.1x 2027 P/E multiple (MCO peers at 10.0x). While, admittedly, the stock is already off ~24% YTD, hitting ~trough multiples, with what we view as incremental risk to '26/'27 estimates, its valuation may be more expensive than perceived. Importantly, we would emphasize that this is a relative call vs. Managed Care peers, where we see the positioning as more compelling for UNH, CVS, and CI (in that order) amid industry dislocation."

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 $195.20 yesterday.

You May Also Be Interested In

• Apple suing OpenAI over alleged misappropriation of trade secrets
• Men’s Wearhouse owner Tailored Brands, bankrupt in 2020, files for IPO
• Tailored Brands files for IPO on Nasdaq