HUM - Humana: Solid Growth Prospects Despite Cost Challenges
2024-03-05 15:02:18 ET
Summary
- Humana is a healthcare giant with diverse revenue streams, including insurance premiums and government funding.
- Humana's stock was pummeled following Q4 2023 earnings when management cut 2024 and 2025 guidance significantly.
- Despite the guidance change, Humana still has strong growth prospects through both Medicare Advantage and Integrated Care.
- With strong growth prospects and mitigated risks, I rate HUM a buy with a price target of $405 or 16% upside.
Humana ( HUM ) is a healthcare giant that generates its revenue through various streams, including insurance premiums, government funding, healthcare services, pharmacy operations, and corporate ventures. Humana has carved out a niche in the Medicare Advantage market, making it a significant player in this space. The company’s focus on creating a chronic care management platform for seniors is considered a key element in driving competitive medical cost advantage....
Humana: Solid Growth Prospects Despite Cost Challenges