Truist Securities lowered its price target on Humana (NYSE:HUM) to $280 from $305 while maintaining a Hold rating, citing valuation adjustments despite encouraging updates shared at the company’s recent Investor Day.
The event highlighted strong momentum across Humana’s core businesses, particularly in the Medicare Advantage (MA) segment, where management sees continued growth potential. The company also pointed to progress in its Medicaid operations, with maturing books expected to support margin expansion, and emphasized scalable growth opportunities at Centerwell, its health services platform.
Management outlined a strategic roadmap through 2028, underscoring plans to enhance operating leverage and boost performance in segments such as Individual MA, Group, Prescription Drug Plans, and Specialty. Capital deployment remains a priority, further reinforcing the company’s long-term strategy.
However, Truist adjusted its valuation assumptions, lowering the price target to reflect a reduced multiple.