Analysts Say Humana (HUM) Election Related Selloff Overdone
Analysts at Wedbush said they view today's sell-off in Human (NYSE: HUM) on election and related budget concerns as overdone.
"We believe rate pressure would exist in Medicare regardless of what political party is in power and that 5% margins are sustainable even with potential rate cuts," said analyst Sarah James.
Wedbush added Humana to its Best Ideas list.
"We believe volume growth inherent to the Medicare sector can drive earnings growth for Humana, even under the bear case 3% margin scenario,” James said.
She thinks penetration increases will drive significant growth in the Medicare market, which should bode well for the stock's valuation.
Wedbush maintained an Outperform rating on Humana (NYSE: HUM) with a price target of $102.00.
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 $76.16 yesterday, with a 52 week range of $59.92-$96.46.
"We believe rate pressure would exist in Medicare regardless of what political party is in power and that 5% margins are sustainable even with potential rate cuts," said analyst Sarah James.
Wedbush added Humana to its Best Ideas list.
"We believe volume growth inherent to the Medicare sector can drive earnings growth for Humana, even under the bear case 3% margin scenario,” James said.
She thinks penetration increases will drive significant growth in the Medicare market, which should bode well for the stock's valuation.
Wedbush maintained an Outperform rating on Humana (NYSE: HUM) with a price target of $102.00.
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 $76.16 yesterday, with a 52 week range of $59.92-$96.46.