Citigroup Maintains Buy, $102 Target on Humana

Citigroup remains Buy-rated with a $102 price target on Humana

as the company reports 4Q11 results and guides under consensus on EPS. Citigroup says, "There's nothing wrong with Humana's fourth quarter earnings, but in trading today it probably isn't enough to sustain such a high level of expectations — Humana's guidance for the quarter was $1.15-1.20 per share, and Humana reported $1.20, but that included a $0.21 benefit (favorable development) partially offset by a $0.13 hit (Humana Foundation contribution), so run rate earnings in the first quarter were only $1.12 per share. In addition, even with 2012 guidance rising modestly, the first quarter EPS guidance of $1.35-1.45 per share is well below the current consensus of $1.77." HUM closed at $90.12 a share on Friday.