Key Takeaways:
- Humana's 2025 Medicare Star Ratings have significantly declined, impacting its Medicare Advantage plans.
- Analysts provide a mixed outlook with a moderate upside potential for Humana's stock.
- GuruFocus's GF Value suggests a substantial upside from the current stock price.
Humana (HUM, Financial) recently faced a setback as its administrative appeal to the Centers for Medicare and Medicaid Services was denied. This decision affects the company's 2025 Medicare Star Ratings, reflecting a notable reduction. Currently, only 25% of Humana’s Medicare Advantage members are in top-rated plans, a significant decline from 94% in the previous year. In response, Humana is actively pursuing litigation through a federal court in Texas.
Wall Street Analysts' Predictions
According to predictions from 21 analysts, Humana Inc (HUM, Financial) is expected to have an average target price of $303.73 within one year. This estimate ranges from a high of $402.23 to a low of $241.00, suggesting a moderate upside of 4.53% from the current share price of $290.55. For a detailed breakdown of these estimates, please visit the Humana Inc (HUM) Forecast page.
The consensus recommendation from 27 brokerage firms positions Humana Inc (HUM, Financial) at an average recommendation of 2.6, which translates to a "Hold" status. The recommendation scale ranges between 1 and 5, where 1 indicates a Strong Buy and 5 suggests a Sell.
GuruFocus's Valuation Perspective
Utilizing GuruFocus's valuation model, the estimated GF Value for Humana Inc (HUM, Financial) in a year is projected at $655.24. This signifies a significant potential upside of 125.52% from the current price of $290.55. The GF Value is a unique metric by GuruFocus, estimating what the fair trading value of the stock should be based on historical trading multiples, past business growth, and future performance expectations. For more in-depth data, visit the Humana Inc (HUM) Summary page.
