Humana: Takeaways from HUM CEO – Prioritizing The Path To 2028

Research evidence excerpt

Humana: Takeaways from HUM CEO – Prioritizing The Path To 2028

Idea

May 15, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMHumana | North America Erin Wright

Equity Analyst

Takeaways from HUM CEO – Erin.Wright1@morganstanley.comMichelle Foley +1 212 761-6137

Research Associate

Michelle.Foley@morganstanley.com +1 212 761-4056

Prioritizing The Path To 2028 Linda Bolduc

What’s Changed Linda.Bolduc@morganstanley.com +1 617 856-8009

Natasha Arya

Humana Inc (HUM.N) From To Research Associate

Price Target $146.00 $217.00 Natasha.Arya@morganstanley.com +1 212 761-6294

Craig Hettenbach

On the heels of 1Q EPS, we hosted a call w/ HUM CEO, which EquityCraig.Hettenbach@morganstanley.comAnalyst +1 212 761-6435

helped to clarify '27 bid strategy, path to 3% target MA margin, John Y Park

& Centerwell growth. Shares have climbed on recent favorable ResearchJohn.Park@morganstanley.comAssociate +1 212 761-4029

industry commentary on cost trend, supporting our higher PT, Jialin Jin

but await visibility on HUM's new member cohort. Jay.Jin@morganstanley.com +1 212 761-3913

2027 MA Bid Strategy & Path to 3% MA Margin by 2028: During our call on April Humana Inc (HUM.N, HUM US)

30, Management reiterated a margin-first framework, stating that the industry Healthcare Facilities & Managed Care | United States of

America

needs 3%+ MA margin for an adequate return and laying out clear priorities: (1)

Stock Rating Underweight

margin progression in 2027 to stay on track for 2028, (2) drive the best retention Industry View In-Line

achievable within that margin constraint (including benefit adjustments with Price target $217.00

Shr price, close (May 14, 2026) $301.35

minimal member disruption), and (3) membership growth as a positive outcome Mkt cap, curr (mm) $38,462

rather than a goal.