Humana, Cerner initiated at Barclays

Barclays sees favorable Medicare Advantage outlook, starts Humana at Overweight. Barclays analyst Steve Valiquette initiated coverage of Humana (HUM) with an Overweight rating and $370 price target. The fundamental Medicare Advantage outlook is the strongest it has been since pre-Affordable Care Act levels “thanks to a number of industry tailwinds brought about by the Republican administration,” Valiquette tells investors in a research note. These include higher Medicare reimbursement, corporate tax reform, and 2019 health insurance fund suspension, the analyst says. He believes Humana will be able to deliver on its low-to-mid-teens annual adjusted earnings target through at least 2021. Valiquette this morning also initiated coverage of Cerner with an Equal Weight rating and $70 price target. The company’s 7%-12% revenue growth outlook relies on the ramp-up of newer products, the analyst contends.
https://thefly.com/landingPageNews.php?id=2789829