In a research report released Monday, Cantor analyst Joseph France weighed in today with a few insights on Humana Inc (NYSE:HUM), following the news that the company has agreed to be acquired by Aetna Inc (NYSE:AET) in a $34 billion cash and stock deal. The analyst maintained a Buy rating on Humana shares with a price target of $230, which implies an upside of 18% from current levels.
France stated, “We like this transaction, which represents a substantial premium over HUM’s close of $187.50 on Thursday, 7/2/15. We also believe that this is a potentially transformative deal for AET, whose Medicare Advantage enrollment stands to more than triple on a pro forma basis, while its total enrollment increases more than 50%. We will review our estimates, ratings, and price targets after this morning’s conference call, but we reiterate our BUY rating.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph France has a total average return of 26.2% and a 87.0% success rate. France has a 32.5% average return when recommending HUM, and is ranked #70 out of 3689 analysts.