UPDATE: RBC Capital Upgrades Humana (HUM) to Outperform
- Nasdaq closes up on tech stocks strength, as hawkish Fed limits S&P
- Dollar surges to two-month high on Fed rate-hike projection
- BofA Fund Manager Survey: 72% Says Inflation 'Transitory', 63% Expect Fed to Signal Taper Aug/Sept, 'Long Commodities' Now the Most Crowded Trade
- Oil falls from multi-year highs on firmer dollar, hike in UK COVID cases
- People Are Spending More Time Outdoors, Which Will Hurt Netflix (NFLX) This Quarter - KeyBanc
RBC Capital analyst Frank Morgan upgraded Humana (NYSE: HUM) from Sector Perform to Outperform with a price target of $479.00 (from $429.00).
The analyst comments "We believe HUM has the best growth prospects in the near and intermediate term, and best earnings visibility in the group. We project EPS growth of ~17% in FY21 vs. the peer group average ~10%. As such, we believe a premium valuation is warranted. Our $479 price target
(prev. $429) is based on 22x (prev. 20x) our FY21E adj EPS. Note that HUM has historically traded at an average premium of ~22% relative to the peer group; our target multiple at 22x represents nearly a 50% premium to the current FY21E multiple, which we believe is justified given the higher growth expectations and visibility."
Shares of Humana closed at $410.27 yesterday.
You May Also Be Interested In
- UPDATE: RBC Capital Starts FS KKR Group (FSK) at Sector Perform
- LIC Housing Finance (LICHF:IN) PT Raised to INR625 at Nomura/Instinet
- Whitbread PLC. (WTB:LN) (WTBCF) PT Raised to GBP37 at Morgan Stanley
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesRBC Capital, 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!