UPDATE: Bank of America Downgrades Humana to Neutral on Reimbursement Headwinds

Bank of America lowered its rating on Humana HUM from Buy to Neutral and reduced its price target from $89 to $83. Bank of America noted, "The operating environment will be more difficult for MA plans under HC Reform and the reimbursement outlook in 2014 and 2015 create significant headwinds during a time period where cost trend is not likely to be as modest as it has been over the past few years, reducing the company's margin for error. However, we expect 2013 guidance has reset the bar low and given HUM's scale and track record, we believe that they will weather this storm better than most." Humana closed at $76.16 on Tuesday.