UPDATE: Deutsche Bank Reiterates On Humana On Multiple Upside Drivers
In a report published Monday, Deutsche Bank analyst Greg Poole reiterated a Sell rating on Humana (NYSE: HUM), and raised the price target from $95.00 to $100.00.
In the report, Deutsche Bank noted, “MA & Commercial drive upside in 1Q despite HIX & PDP earnings drags. HUM's 1Q14 earnings came in above Street expectations as upside in the MA and Commercial segments more than offset pressure in the public exchange and PDP businesses. HUM reaffirmed its 2014 EPS guidance which continues to incorporate a wide range with the Street still above the top-end of the range.
"HUM's core MA biz delivered on both growth and margins in 1Q which is also contributing to upside in the HC Services segment. However, HUM's reliance on 3Rs in public HIX dwarfs that of public MCO peers while PDP margins are also seeing pressure. We nudge up PT but HUM remains Sell rated given significant premium valuation to peers.”
Humana closed on Friday at $120.04.
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