Jefferies Previews Humana's Investor Day

Jefferies has published its research report on Humana HUM previewing their investor day. Jefferies expects 2011 revenue of $35.9 billion and EPS of $6.18 which are 4% and 1% respectively above consensus. They also expect medical membership growth of 2.4% YoY. Consensus 2011 EPS is $6.11 but Jefferies notes that "estimates vary widely from a low of $5.75 to a high of $6.54. In a note to clients, Jefferies writes, "Humana's membership growth prospects are attractive. The 15% Solution positions Humana to minimize margin pressure as MA rates trend to parity. The Individual book presents risk, but more importantly the recent run-up puts HUM's PE near the top of group valuations." HUM closed Tuesday at $57.56.