Humana (HUM) Bounces After Losing One-Third Of Their Value

After losing over one-third of its market value over the past few sessions, following a nasty profit warning, shares of Humana Inc. (NYSE: HUM) are on the mends today - adding 9%.

Yesterday, Humana said it anticipates EPS for 1Q08 in the range of $0.44 to $0.46 versus its previous guidance of $0.80 to $0.85 with EPS for FY08 now projected to be in the range of $4.00 to $4.25 compared to previous guidance of $5.35 to $5.55. The stock lost nearly 14%.

Tuesday was a far worse day for Humana. The stock fell 24% on WellPoint's (NYSE: WLP) warning as investors anticipated this type of bad news from Humana as well, which they received.

A number of analysts defend the stock following the drastic price drop. Today, an analyst at Citigroup said the stock could double from current levels. The firm said even with problems in 2008, Humana can still reach 2009 targets. The firm rates Humana a Buy with an $80 price target. [LJ]

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