$HUM

Analysts updated ratings for five stocks: Humana (HUM) upgraded to Outperform with a $520 target due to Medicare Advantage improvements; V.F. Corporation (VFC) upgraded to Overweight with a $20 target on brand recovery; Adobe (ADBE) downgraded to Hold with a $267 target due to AI competition; AST SpaceMobile (ASTS) cut to Neutral with a $54 target over launch delays; Innovative Industrial Properties (IIPR) initiated with a Buy rating and $56.25 target for growth potential.

Humana Inc. shares fell 4.41% to $413.16 on Friday, underperforming the S&P 500 and Dow Jones, ending a two-day winning streak. The broader market also declined.

Humana (HUM) agreed to a $2.8 bn deal with BlackRock, restructuring ownership of 150 CenterWell clinics. BlackRock acquires WCAS's majority stake, with Humana retaining minority ownership. The deal reduces Humana's balance sheet obligations. Humana's Medicare Advantage star ratings improved, potentially increasing 2028 bonus payments to $4.8 bn, per Evercore ISI. S&P affirmed Humana's BBB rating but maintained a negative outlook.

William O'Neil initiated coverage of Humana with a 'Buy' rating. The stock has risen 11.64% year-to-date and 68.74% over five days. The rating is based on valuation, EPS revisions, and visibility metrics. Separately, Truist noted Humana's joint venture with BlackRock may improve financial flexibility.

Humana announced that BlackRock's HPS Investment Partners will acquire Welsh Carson's stake in about 150 CenterWell clinics, valued at $2.8B. The deal, expected to close in Q4 2026, will make BlackRock the majority owner, with CenterWell retaining a minority stake and operational control. Humana stated patient care will remain unchanged, and the deal is not expected to materially affect its 2026 earnings guidance.

Humana (HUM) is discontinuing 37 PPO Medicare Advantage plans in 2027, offering HMOs and special needs plans instead. Affected members have a 63-day window to enroll in Medigap without health questions, according to federal rules. Humana expects to retain about 40% of members in other plans. Members must choose between Humana's HMO or Original Medicare with Medigap and Part D, considering network, costs, and health needs.

Six Minnesota health insurers, including Humana, will exit Medicare Advantage (MA) plans in dozens of counties in 2027, affecting hundreds of thousands of residents. The exits are due to federal reimbursement cuts, rising pharmacy costs, increased healthcare utilization, and the Inflation Reduction Act's drug price cap. Insurers are exiting less profitable markets, with MA plans generating no profit, according to industry experts.

Medicare Advantage enrollees face changes for 2027, with 3.2 million needing new plans due to insurers terminating policies. Insurers like Humana, UnitedHealthcare, and CVS' Aetna are reducing offerings. Costs are rising, with average premiums dropping 7% overall but increasing 23% for non-special needs plans. Out-of-pocket limits and prescription deductibles are also increasing.

AngioDynamics announced that Humana updated its Medicare Advantage coverage policy to include NanoKnife IRE for prostate and liver cancer, effective October 1, 2026. This follows recent reimbursement milestones, including new CPT codes and Palmetto GBA's LCD L40205. Humana, with 7 million members, will use LCD L40205 criteria for coverage, subject to prior authorization.

BlackRock's HPS credit arm is lending $2.8 billion to Humana, entering a market previously dominated by Apollo's 'capital solutions' business. Apollo has made large loans to companies like Intel and Keurig Dr Pepper, earning $800 million last year. Both firms are competing to provide corporate credit solutions.