UPDATE: Cantor Fitzgerald Initiates Humana with Buy, $95 PT on Medicare Book Growth

Cantor Fitzgerald initiates its coverage on Humana (NYSE: HUM) with a Buy rating and a price target of $95. Cantor Fitzgerald notes, "Although its commercial business is relatively weak, Humana's large Medicare book is growing rapidly because of baby boomers aging into Medicare and choosing managed care, and the company's long-term strategy of reinvesting in more cost effective products that preserve the benefits its members find most attractive. This strategy, leveraged by greater consumer engagement, has also fostered better medical management. This has proven a competitive advantage as the government has implemented a program to cut Medicare Advantage reimbursement by 15% over a period of years."HUM closed at $79.32 on Tuesday.