Evercore Notes Humana’s (HUM) Long-Term Earnings Growth Despite Medium-Term Uncertainty

Humana Inc. (NYSE:HUM) ranks among the stocks with low beta that can beat market volatility. On September 22, Evercore ISI began coverage of Humana Inc. (NYSE:HUM) with an In Line rating and a $295 price target, emphasizing the company’s medium-term concerns as well as its potential for long-term earnings growth.

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Evercore ISI stated that “after 2028, Humana Inc. (NYSE:HUM) has the right mix of assets to grow adjusted EBIT at an LDD rate (and EPS likely at a mid-teens CAGR),” despite the medium-term outlook being “less clear.”

With an estimate that “~70%+ of MA members” might be enrolled in 4-Star or higher plans by 2028, the firm praised management’s aim to return top-quartile Stars performance, calling it “reasonable.”

Although Evercore ISI is not expecting a Stars impact in 2027, it stated that this would be “a meaningful tailwind to EPS.”

Humana Inc. (NYSE:HUM) is focused on improving health and well-being by providing a variety of healthcare benefits to its medical and specialty members. These include fully insured medical and specialty health insurance that covers vision, dental, and supplemental health benefits.

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Disclosure: None. This article is originally published at Insider Monkey.