Humana Inc (NYSE:HUM) a Buy: Oppenheimer

In a research note issued to investors, Michael Wiederhorn at Oppenheimer Reiterated their Buy rating on Humana Inc (NYSE:HUM). The analyst placed a $193.00 price target on the stock which indicates a 8.72% upside to the last closing price. In the year following Wiederhorn’s ratings, the stocks covered yield an average return of 27.90% according to In the past year 129 out of 148 recommendations or 87% were successful.

On a consensus basis, Wall Street sell-side analysts have a mean target price of $169.538 for Humana Inc. (NYSE:HUM). This number is based on the mean estimate from the 13 research firms that recently issued reports on the company.

According to analysts, Humana Inc. (NYSE:HUM) is expected to report earnings per share for the current fiscal quarter of $2.54. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2014-12-31 of $1.09.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock is ranked 2.11 based on 13 sell-side broker recommendations. Of the 13 analyst estimates, the most bullish sees the stock reaching $195 within the next 12 months while the most bearish analyst sees the stock at $142 within the year.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $8.88. The high end estimate for this time frame is $9.63 with the low being $7.74. In looking at the next three to five years, the long term earnings per share estimate growth rate for the company is 11.11%, based on 7 analysts providing projections.

Humana Inc. (Humana) is a health care company. Humana operates in three segments: Retail, Employer Group, and Health and Well-Being Services. The Company offers a range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. As of December 31, 2011, it had approximately 11.2 million members in its medical benefit plans, as well as approximately 7.3 million members in its specialty products. During the year ended December, 31, 2011, 76% of its premiums and services revenue were derived from contracts with the federal government, including 16% related to its Medicare Advantage contracts in Florida with the Centers for Medicare and Medicaid Services (CMS). In August 2012, the Company acquired Harris, Rothenberg International, Inc. In November 2012, the Company acquired Certify Data Systems. In December 2012, the Company acquired Metropolitan Health Networks, Inc.