Morgan Stanley Says Lack of 4Q Upside May Prove Disappointing
Morgan Stanley has published a research report on Humana (NYSE: HUM) after the company reported on-point earnings in-line with analyst estimates.
In the report, Morgan Stanley writes, "Though HUM met consensus for Q4, the lack of upside will likely prove disappointing. Beyond that, the 2012 outlook raise (by a dime to $7.50-$7.70) this early in the year is consistent with moving toward our/Street forecasts of ~$8.00. However, the smaller magnitude of the raise relative to Q4/10 suggests those expecting '12 numbers well above ours may prove optimistic. HUM shares will likely come under pressure today and will not gain ground until we get beyond the preliminary MA rate notice on 2/17."
Morgan Stanley maintains its Equal-weight rating on Humana, which is currently trading down $5.11 from Friday's $90.12 closing price.
