Raymond James Gives Humana a Buy Rating with $340 Price Target

Humana (HUM) has been assigned a Buy rating by Raymond James' John Ransom with a $340 price target. Ransom is a 5-star analyst with an average return of 8.5% and a 57.23% success rate. Mizuho Securities' Ann Hynes also gave Humana a Buy rating, while Morgan Stanley maintained a Hold rating. Humana's market cap is $27.34B and P/E ratio is 15.81.

Humana Inc. (NYSE: HUM) has been assigned a Buy rating by Raymond James' John Ransom with a $340 price target. Ransom, a highly regarded 5-star analyst with an average return of 8.5% and a 57.23% success rate, believes the stock is undervalued and poised for growth. Mizuho Securities' Ann Hynes also gave Humana a Buy rating, while Morgan Stanley maintained a Hold rating.

The stock has been under pressure recently, hitting a 52-week low of $212.33, reflecting a 42.31% decline over the past year. However, analysts maintain a moderate buy rating with price targets ranging from $224 to $402, suggesting potential upside. The company's P/E ratio of 15.75 indicates it may be trading at attractive valuations.

Despite market pressures, Humana maintains a GOOD financial health score, with strong free cash flow yield and a 15-year track record of consistent dividend payments. The company has faced several challenges, including a lawsuit loss against the Centers for Medicare & Medicaid Services (CMS) regarding its 2025 STAR ratings, which could result in an estimated $15 EPS headwind in 2026. However, Raymond James suggests this outcome was largely anticipated by the market and could be a "clearing event" that allows for a rally in coming weeks.

In other recent news, Humana announced its Medicaid plan, Humana Healthy Horizons, is now available for Virginia Cardinal Care beneficiaries, expanding its presence in the state. The company will invest an additional $2 million in the Virginia Health Care Foundation over five years. Additionally, Humana has expanded its climate commitments, setting a new target to reduce emissions from its investment portfolio.

The stock's performance has been mixed, with institutional investors showing interest. The New York State Common Retirement Fund, for instance, increased its stake in Humana by 4.2% during the first quarter. Other institutional investors, such as Revolve Wealth Partners LLC and Madison Investment Advisors LLC, have also added to their stakes in the stock.

Overall, while Humana faces challenges, the analyst ratings and market conditions suggest the stock may be undervalued. Investors should closely monitor the company's earnings and any updates on its STAR ratings, which are scheduled to be released in October 2025.

References:

[1] https://www.investing.com/news/analyst-ratings/humana-stock-holds-outperform-rating-at-raymond-james-despite-stars-lawsuit-loss-93CH-4142361
[2] https://www.investing.com/news/company-news/humana-stock-hits-52week-low-at-21233-usd-93CH-4142047
[3] https://www.marketbeat.com/instant-alerts/filing-new-york-state-common-retirement-fund-grows-stock-holdings-in-humana-inc-nysehum-2025-07-16/