Humana (Buy, TP: SEK70.00) - Staffing needs to be balanced
Humana reported a weak Q2, with staffing challenges and costs across the operations restricting growth and profitability. However, we view most of the weak points as temporary. Humana again needs to re-establish its credentials with investors in a welfare-service universe that has fallen out of favour, with the market looking at ‘deep value’ valuations. We have cut our EPS by 20% for 2022e, but by only 1–4% for 2023–2024e. The still-attractive valuation leads us to reiterate our BUY, but we have reduced our target price to SEK70 (73).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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