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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Humana Inc.
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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Humana Inc.
Jul 30, 2025 10:31 AM

01:15 PM EDT, 07/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $1 to $277, based on 16.2x our 2025 EPS view, in line with HUM's historical forward average. We raise our 2025 EPS estimate to $17.11 from $16.33 and trim 2026's to $13.88 from $14.15. Q2 EPS of $6.27 vs. $6.96, beat consensus by $0.40. While the peer group has been lowering its 2025 EPS guidance, HUM lifted its guidance to approximately $17.00 from $16.25. Revenue growth was robust at $32,388M (+9.6% Y/Y), primarily due to higher per-member Medicare premiums resulting from the Inflation Reduction Act's increased direct subsidy, partially offset by a decline in individual Medicare Advantage membership due to the strategic exit from unprofitable plans. The Insurance segment's benefit ratio of 89.9% in Q2, though up 50 bps Y/Y, aligned with management's previously disclosed expectation of "approximately 90%," suggesting that cost pressures may be stabilizing and becoming more predictable. We think the Insurance segment's benefit ratio will average 90.2% for full-year 2025.

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