Humana upgraded to Outperform on pullback, improving outlook at Cowen

Cowen analyst Charles Rhyee upgraded Humana to Outperform from Market Perform, noting that the company revised up its net membership growth estimate for its individual MA products for 2019 at the end of November and then bumped it up again more recently. Rhyee raised his 2019 estimates for Humana, adding that he sees room for additional upside given the company’s room to lever up to fund M&A or share buybacks. Additionally, the pullback in shares this past fall seems to have removed a premium for a potential takeout, which he does not think was warranted given the lack of likely buyers, Rhyee said. He maintains a $372 price target on Humana shares.
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