Humana shares upgraded to Buy as stock rebounds and long-term growth targets set.

Humana Inc. has been upgraded to a Buy rating following a rebound from a more than 65% stock decline. The upgrade is supported by improved CMS rate decisions and activist investor involvement. Despite 2026 earnings per share guidance being below Q1 levels, Humana aims for a sustainable Medicare Advantage margin above 3% and long-term earnings growth by 2028. The company's recent Q1 results beat revenue and adjusted EPS expectations, with positive membership growth and operational discipline positioning it for a potential stock price above $450 by 2028.