Piper Sandler raises Humana’s price target by $72 to $254, citing 560 basis points of margin expansion potential through 2028.
Piper Sandler increased its price target for Humana to $254 from $182, reflecting confidence in 560 basis points of Individual Medicare Advantage margin expansion by 2027-2028. The firm maintained a Neutral rating due to near-term execution risks, including regulatory pressures and Star Ratings challenges.
Humana’s Q1 2026 earnings beat and stabilizing Medicare Advantage utilization trends revived the longer-term margin recovery thesis. The $72 target raise is among the largest single-firm adjustments for Humana this cycle, underscoring Piper Sandler’s conviction in the multi-year outlook despite cautious near-term guidance.
The revision follows Humana’s stronger-than-expected Medicare Advantage performance and a favorable medical loss ratio, signaling renewed focus on margin recovery potential.