UPDATE: FBR & Co. Reiterates Market Perform Rating, Raises PT on Humana as Shares Remain Fairly Valued

In a report published Monday, FBR & Co. analyst Steven Halper reiterated a Market Perform rating on Humana HUM, and raised the price target from $110.00 to $132.00. In the report, FBR & Co. noted, “Humana Inc. (HUM) reported 3Q14 results this morning. EPS were below expectations due to somewhat higher costs. The company narrowed its earnings guidance range with the midpoint unchanged. However, consensus was about $0.25 above the midpoint. The company continues to make investments this year to drive future growth. As such, 2015 EPS are expected to grow by about 17%, which is impressive in its own right. With its 2015 EPS guidance range of $8.50–$9.00 and the consensus at $8.83, the company did not exceed investors' elevated expectations. Accordingly, we are not surprised by the weakness in the shares today. We reiterate our Market Perform rating.” Humana closed on Friday at $130.58.