Cantor upgrades Humana, sees strong Medicare margin recovery in 2027
HUM•Cantor Fitzgerald upgraded Humana to overweight from neutral and raised its price target to $460 from $300. The brokerage raised its 2027 and 2028 earnings estimates, citing confidence in Medicare Advantage margin and quality-rating recovery.
1. Higher estimates
Cantor raised its 2027 earnings-per-share estimate to $17.96 from $15.86 and its 2028 estimate to $28.27 from $25.38. It expects pricing, benefit changes and medical-cost controls to drive strong Medicare margin improvement in 2027.
2. Quality ratings ahead
Cantor expects Medicare quality scores due this week to be positive, saying stronger ratings would help Humana earn higher government bonus payments in 2028. It identified Humana’s 2027 forecast and confirmation that enrollment is in line with expectations as potential catalysts after the score release.
