FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Maintains Hold Rating On Shares Of Humana Inc.

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target to $330 from $256, 21.5x our 2027 EPS estimate, a premium to HUM's five- and 10-year historical forward averages of 16.7x and 17.1x, respectively. We lift our 2026 EPS estimate by $0.12 to $8.83 and our 2027 EPS view by $0.30 to $15.34. We recently upgraded our 12-month fundamental outlook for the managed health care sub-industry to neutral from negative, with HUM and peers taking steps to improve profitability via increased medical premiums, strategic portfolio shifts/exits, and heightened focus on cost control within an elevated medical cost landscape. We anticipate that these actions may improve margins and profitability looking ahead to 2027-2028 and think valuations could gradually improve. However, we see 2026 as a challenging year, as guidance reflects significant earnings pressure from Star ratings headwinds, with adjusted EPS guidance of "at least $9.00," down almost 50% from $17.14 in 2025.

Related Articles

Research

Research Alert: Ccl Industries: Q1 Beats Estimates, Aluminum And Energy Costs Pressure Margins

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CCL Industries posted Q1 2026 adjusted EPS of CAD1.20 vs. CAD1.17 consensus, though the beat was mechanical from buybacks rather than fundamental acceleration. Sales grew 2.8% to CAD1,939M vs. CAD1,925M consensus on 1.9% organic growth, while operating income was flat at CAD317.5M but beat the CAD299M estimate. The print removes downside risk but does not change the earnings trajectory, with limited catalyst for expansion absent margin recovery at Checkpoint and Innovia. Management expects the Pennsylvania aluminum facility to return to full operation in Q2 following equipment outages. The core CCL segment delivered 3.1% organic sales growth and 5.2% operating income increase to CAD210.8M despite capacity constraints. Geographically, mid-teens APAC growth and mid-single-digit Europe/Latin America growth offset single-digit North America declines from soft consumer markets. The balance sheet remains strong, with 0.85x leverage and CAD1B cash, supporting CAD130M in capital returns during the quarter.

$CCL.B
Research

Research Alert: Strength In Asia Paced Manulife Financial's Q1 Results

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MFC posted Q1 core EPS of CAD1.06 versus CAD0.99 prior year, missing our CAD1.10 estimate and CAD1.09 consensus view despite 11% Y/Y growth. Net income surged to CAD1.147B from CAD485M, due to lower market experience charges and underlying business growth. We are encouraged by these results, particularly Asia's standout performance, with core earnings up 22% to CAD820M, APE sales up 11%, and NBV up 15%, reinforcing the region as MFC's key growth engine. Management's call is scheduled for 8 a.m. EST tomorrow to provide additional color and outlook for 2026 amid macroeconomic uncertainty. Global WAM delivered core earnings of CAD448M, up 2% on constant currency, with EBITDA margin improving 60 bps to 29.0% despite eMPF transition headwinds. MFC maintained strong capital metrics with LICAT ratio of 136% and returned CAD1.2B to shareholders through dividends and buybacks, while book value per share reached an all-time high of CAD26.30.

$MFC
Research

Research Alert: Strength In Asia Paced Manulife Financial's Q1 Results

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MFC posted Q1 core EPS of CAD1.06 versus CAD0.99 prior year, missing our CAD1.10 estimate and CAD1.09 consensus view despite 11% Y/Y growth. Net income surged to CAD1.147B from CAD485M, due to lower market experience charges and underlying business growth. We are encouraged by these results, particularly Asia's standout performance, with core earnings up 22% to CAD820M, APE sales up 11%, and NBV up 15%, reinforcing the region as MFC's key growth engine. Management's call is scheduled for 8 a.m. EST tomorrow to provide additional color and outlook for 2026 amid macroeconomic uncertainty. Global WAM delivered core earnings of CAD448M, up 2% on constant currency, with EBITDA margin improving 60 bps to 29.0% despite eMPF transition headwinds. MFC maintained strong capital metrics with LICAT ratio of 136% and returned CAD1.2B to shareholders through dividends and buybacks, while book value per share reached an all-time high of CAD26.30.

$MFC