Street View: Rating cut for Humana's Medicare plan puts 2027 margin target at risk

Reuters

Street View: Rating cut for Humana's Medicare plan puts 2027 margin target at risk

2024 10월 3, 오후 5:07 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>BUZZ-Street View: Rating cut for Humana's Medicare plan puts 2027 margin target at risk</title></head><body>

** Humana HUM.N said on Wednesday enrollments in its top-rated Medicare insurance plans dropped sharply, sending shares down over 20% on Wednesday and wiping nearly $4 bln from the insurer's market value

** Co said the quality rating of one of its plans, which accounts for nearly half Medicare Advantage (MA) memberships, fell to 3.5 stars down from 4.5 last year

** Medicare plans cover Americans aged 65 and above or the disabled

RISK TO 2027 MARGIN TARGET

** J.P. Morgan ("neutral") says it would be an understatement to say margin targets of "at least 3%" for HUM's Medicare business in 2027 have a higher degree of difficulty now

** Mizuho ("outperform," PT: $410) says co is appealing the rating, and that rival UnitedHealth's UNH.N lawsuit, as per a report, provides hope that the process will be successful for HUM

** BofA ("underperform," PT: $247) estimates this would hurt revenues by 3.5% due to lost bonus payments and could almost eliminate 2026 earnings per share

** The loss of stars pushes recovery of margins further out in the future and could impact brand perception in the upcoming enrollment period — BofA

** UBS ("neutral," PT: $380) says if UnitedHealth UNH.N and CVS CVS.N maintain their plan ratings at roughly the same levels, this should be a significant tailwind for them to pick up members and improve margin

Reporting by Puyaan Singh

</body></html>

Street View: Rating cut for Humana's Medicare plan puts 2027 margin target at risk

최신 뉴스

TSX ends lower ahead of U.S. jobs data; energy limits decline

Most Latam FX down as dollar strengthens; Middle East in focus

Indexes end lower with U.S. jobs report ahead, Middle East in focus

Nasdaq top and bottom performing stocks at about 03:45 p.m. EDT

Indexes ease with U.S. jobs report ahead, Middle East in focus

XM 실시간 채팅