UPDATE: RBC Capital Upgrades Humana (HUM) to Outperform

January 4, 2021 1:39 AM EST
Get Alerts HUM Hot Sheet
Price: $428.94 +0.19%

Rating Summary:
    17 Buy, 15 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 17 | New: 13
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(Updated - January 4, 2021 5:30 AM EST)

(updating comment)

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."

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 $410.27 yesterday.


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