Humana Inc Stock Fair Value Calculation – Bank of America Upgrades Humana Inc and Increases Stock Price Target to $308 in Latest Rating Change

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Humana Inc ($NYSE:HUM) is a leading health insurance company in the United States, offering a range of health and wellness products and services to its customers. In recent years, Humana has been focused on diversifying its business beyond traditional health insurance and expanding into new areas such as telemedicine and healthcare technology. This has helped the company stay ahead of the curve and adapt to changing consumer preferences and healthcare trends. This growth was driven by higher premiums and increased membership in both its individual Medicare Advantage plans and group employer plans. With its solid financial performance and strategic focus on innovation and diversification, Humana has caught the attention of major investment firms like Bank of America. In their latest rating change for the stock, Bank of America upgraded Humana from “underperform” to “neutral” and raised their price target from $247.00 to $308.00.

It reflects the company’s strong financials, its ability to adapt to changing market conditions, and its potential for continued growth in the coming years. This news may attract more investors to the stock and potentially drive up its value in the market. Furthermore, this rating change from Bank of America may also have a positive impact on Humana’s overall reputation and perception among investors. With a higher rating and price target, the company may be seen as a more attractive investment opportunity, which could lead to an increase in demand for its stock. With a strong track record of financial performance and a strategic focus on innovation and diversification, the company is well-positioned for continued growth in the healthcare industry.

Price History

On Monday, leading healthcare company Humana Inc saw a drop in its stock price, closing at $255.65. This was a decrease of 1.94% from the previous day’s closing price of $260.71. This announcement from Bank of America has caused a stir in the market, as investors are now looking at Humana as a potential investment opportunity. The increase in stock price target indicates a positive outlook for the company’s future performance and growth potential. One of the main reasons for Bank of America’s upgrade is Humana’s strong financial standing and consistent growth in recent years. Moreover, Humana has been making strategic moves to expand its reach and offerings in the healthcare market. In July, the company announced its plans to acquire Kindred at Home, one of the largest home health and hospice providers in the United States.

This move will not only strengthen Humana’s position in the home health market but also diversify its revenue streams. In addition to this, Humana has been actively investing in digital health solutions and telemedicine, which have become increasingly important in the current healthcare landscape. This shift towards digital healthcare has not only helped the company navigate through the pandemic but also positions it well for future growth opportunities. It reflects the company’s strong performance and potential for continued success in the future. This news is likely to attract more investors, making Humana an attractive option in the healthcare market. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Humana Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Humana Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Humana Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Humana Inc are shown below. More…

Analysis – Humana Inc Stock Fair Value Calculation

After conducting a thorough analysis, I have come to the conclusion that HUMANA INC is a strong financial company. Their financials show consistent growth and stability, indicating a solid foundation for future success. Based on our proprietary Valuation Line, the intrinsic value of a share of HUMANA INC is estimated to be $562.1. This valuation takes into account various financial factors, such as revenue, expenses, and profitability. This suggests that the company is currently undervalued by 54.5%. Currently, HUMANA INC stock is trading at $255.65, significantly lower than its intrinsic value. As such, there is an opportunity for investors to purchase shares at a discounted price. This presents a potential for high returns in the future, as the stock price may eventually reach its intrinsic value. Overall, our analysis shows that HUMANA INC is a well-performing company with strong financials. The current undervaluation of their stock presents an attractive opportunity for investors to potentially benefit from future growth and returns. More…

Peers

In the ever-changing world of healthcare, Humana Inc. has been a leader in providing quality services to its customers. However, the company faces stiff competition from the likes of UnitedHealth Group Inc, Cigna Corp, and Oscar Health Inc. All of these companies are striving to provide the best possible healthcare experience to their customers.

– UnitedHealth Group Inc ($NYSE:UNH)

UnitedHealth Group Inc. is an American for-profit managed health care company based in Minnetonka, Minnesota. It is the largest healthcare company in the world by revenue, with 2019 revenue of $242.2 billion. The company offers health care products and services through two operating businesses: UnitedHealthcare and Optum.

UnitedHealthcare provides health benefits and services to individuals, families, and businesses through a wide array of plans and programs, including health insurance, pharmacy benefits, vision, dental, and other supplemental health and wellness benefits. Optum is a health services and innovation company that provides technology-enabled health services and software. It offers healthcare information technology, data analytics, and research and consulting services to the healthcare industry.

The company has a market capitalization of $488.16 billion as of April 2021 and a return on equity of 21.75%.

– Cigna Corp ($NYSE:CI)

Cigna Corp is a health services company with a market cap of 88.46 billion as of 2022. The company has a return on equity of 11.01%. Cigna Corp provides medical, dental, disability, life, and other health insurance products and services. The company also offers pharmacy benefit management services.

– Oscar Health Inc ($NYSE:OSCR)

Oscar Health is a technology-driven health insurance company founded in 2012. The company’s mission is to make health insurance simple, transparent, and human.

Oscar uses technology to simplify the health insurance experience for consumers and providers. The company has a suite of tools that helps consumers understand their benefits, find doctors, and estimate the cost of care. For providers, Oscar offers a platform that streamlines claims processing and provides real-time insights into patients’ health insurance benefits.

Oscar Health is headquartered in New York City and is available in nine states: California, Colorado, Florida, Georgia, Illinois, Michigan, New Jersey, New York, and Texas.

Summary

Bank of America has upgraded their rating for Humana, a healthcare company, from “underperform” to “neutral” and increased their price target for the stock. This indicates that they believe the stock is now a more attractive investment option. The new price target is set at $308.00, which is significantly higher than the previous target of $247.00.

This analysis from Bank of America suggests that there may be positive developments in the company that could lead to future growth and profitability. Investors may want to consider this information and do their own research on Humana before making any investment decisions.