Humana's price target raised to $254 on strong Medicare Advantage margins and Q1 earnings beat.

Piper Sandler raised Humana's price target from $182 to $254 following a strong Q1 2026 earnings report, driven by better-than-expected Medicare Advantage performance and a favorable medical loss ratio. The firm highlighted a potential 560 basis points margin expansion across 2027 and 2028, signaling confidence in Humana's long-term margin recovery despite near-term execution risks. Humana's Q1 adjusted EPS beat consensus, and membership growth remains robust, but Piper maintains a Neutral rating due to uncertainties in meeting 2026 guidance. Investors should weigh the margin recovery potential against operational risks when considering Humana stock.