Jefferies Lifts Target on Humana (HUM) Post Q3 Results, Sees 5% MA Margin
Jefferies boosted its price target earlier on Buy-rated Humana (NYSE: HUM) from $80 to $88 on better margins.
The firm comments, "We are increasingly confident that HUM can get back to a 5% Retail MA margin in '13, though perhaps not to prior year levels. HUM captured the higher medical expense trends in the "younger" Retail MA cohorts in its 2013 bids. The 1H trends have now stabilized. We are increasing our 2013 EPS by 3% (which was below consensus and guidance) and applying a somewhat higher multiple (11.3x) to our $88 PT (up from $80)."
The firm trimmed Q4 EPS from $1.23 to $1.05, FY12 goes up from $7.01 to $7.32 and FY13 goes up from $7.55 to $7.76.
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 $75.52 yesterday, with a 52 week range of $59.92-$96.46.
The firm comments, "We are increasingly confident that HUM can get back to a 5% Retail MA margin in '13, though perhaps not to prior year levels. HUM captured the higher medical expense trends in the "younger" Retail MA cohorts in its 2013 bids. The 1H trends have now stabilized. We are increasing our 2013 EPS by 3% (which was below consensus and guidance) and applying a somewhat higher multiple (11.3x) to our $88 PT (up from $80)."
The firm trimmed Q4 EPS from $1.23 to $1.05, FY12 goes up from $7.01 to $7.32 and FY13 goes up from $7.55 to $7.76.
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 $75.52 yesterday, with a 52 week range of $59.92-$96.46.