Humana shares jump about 12% after CMS data show stronger 2027 Star Ratings; Baird upgrades to Buy
CMS' 2027 Star Ratings show a sharp improvement for Humana's Medicare Advantage and Part D plans, lifting eligibility for quality bonus payments and improving perceived earnings durability. With 95% of MA members in 4+ star plans and expanded 4.5-star coverage, analysts upgraded the stock and raised targets, highlighting better margins and a clearer path to profit recovery versus peers facing rating pressure.
AI Insight · NCSKHUM2USD/USDTAI Insight
▲ Bullish
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Federal CMS data for 2027 showed a sharp improvement in Humana’s Star Ratings, with 95% of its Medicare Advantage members in plans rated 4.0 stars or higher and 42% in 4.5-star plans. Humana shares rose about 12% intraday following the update. Baird upgraded the stock to Buy from Hold and lifted its price target to $596 from $390, citing confidence in 2028 adjusted EPS of more than $35.