Evercore ISI initiated coverage on Humana (NYSE: HUM) with an In Line rating and a $295 price target, saying the company’s long-term growth potential was offset by near-term uncertainty.
The firm said Humana, with a market cap of roughly $33 billion, was well-positioned to grow adjusted EBIT at a low double-digit rate and EPS at a mid-teens CAGR post-2028. However, it cautioned that the medium-term outlook was less clear as the company worked toward normalized margins.
Evercore said management’s goal to reach top-quartile Stars performance by 2028 was achievable, though it did not model a Stars benefit for 2027. It also highlighted risks from competitive Medicare Advantage pricing, which could drive higher-than-expected utilization in 2026.
The firm said current valuation reflected a fair balance of risks and opportunities, with upside potential dependent on greater clarity around Stars, operating leverage, and the 2026 enrollment period.
