Humana upgraded at Cantor on Medicare margin and STARS recovery

Cantor Fitzgerald upgraded Humana to Overweight with a $460 price target, implying 13.8% upside from the Oct 6 close of $404.27. The firm cited Humana's strong Medicare Advantage positioning and potential margin improvements as reasons for the upgrade.

Humana (HUM) stock rose 1.4% in pre-market trading after Cantor Fitzgerald upgraded it to Overweight, raising its price target to $460 from $300. The firm cited confidence in Humana's Medicare Advantage margin recovery and improved STARS ratings, also lifting EPS forecasts for 2027 and 2028. Humana trades at 9.9x 2028 earnings, below its historical multiple. Other analysts have also expressed bullish sentiment, with Barclays and Wolfe Research maintaining Overweight/Outperform ratings.

Cantor Fitzgerald upgraded Humana (HUM) to Overweight, raising its price target to $460 from $300, citing improved Medicare margin outlook. The firm increased EPS estimates for 2027 and 2028, noting undervaluation. Humana's stock has surged 106% in six months, with a current P/E ratio of 38.5. InvestingPro values the stock at $441, suggesting undervaluation.

Humana AB (HUM) will delist from Nasdaq Stockholm after Ambea acquired over 90% of its shares and plans a squeeze-out. An EGM is scheduled for 30 Oct 2026 to elect new board members.

UnitedHealthcare will discontinue some Medicare Advantage plans in 2027, notifying affected members in October. Members can switch plans or revert to original Medicare. The move follows financial pressures, including rising healthcare costs and government payment reductions, despite a 2.48% payment rate increase for 2027.

Humana (HUM) stock rose 8% after Barclays upgraded it to Overweight from Equalweight, indicating a more positive outlook. The stock has seen significant volatility, with an 8-month low of -20.6% due to CMS payment rate concerns. Humana is up 54.3% YTD, near its 52-week high. Investors who bought shares 5 years ago have seen modest gains.