Humana (Buy, TP: SEK62.00) - Value with weak momentum
Humana continued its sequential recovery in Q3, but with mixed underlying trends. Notably, there was a price to wage-cost imbalance in Personal Assistance, implying challenges in this area will continue. We have cut our 2022–2024e EPS by 6–9% post-Q3. The still-attractive valuation leads us to reiterate our BUY. However, we have cut our target price to SEK62 (70), also noticing that the whole welfare-service universe has fallen out of investor favour, making momentum weak.Humana AB is a Sweden-based care provider. It operates through four segments: Individual & Family, Personal Assistance, Elderly Care and Other Nordics. The Individual & Family segment provides psychosocial disorders and mental illness care. The Personal Assistance segment provides personal assistance to people with functional disabilities. The Elderly Care segment provides housing for the elderly. The Other Nordics segment covers the Company's developing market operations in the area. It operates in Sweden, Norway, Finland and Denmark.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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