Credit Suisse Raises PT on Humana to $71 (HUM)

Credit Suisse is out with its report today on Humana HUM, raising its PT from $70 to $71. In a note to clients, Credit Suisse writes, "HUM 2011 guidance increased to $5.95 - $6.15, ex-charge 25c to exit TRICARE ($5.70-$5.90 GAAP), reflecting better than expected MA and stand-alone Part D sales and improved commercial segment earnings. We increased our 2011E EPS to $6.30 (+8c), assuming a higher Medicare margin and include share repurchases. Our new 2012-2013 EPS estimates are $6.40 (+10c), and $6.50 (+10c), respectively. We increase our DCF derived price target to $71 (+$1). We maintain our Outperform rating as we believe HUM will be a net beneficiary of the expected shakeout of smaller plans in the MA market due to the challenging reimbursement environment." At the time of posting, shares of HUM were trading at $58.53, down 0.36% from Monday's close.