It is time to purchase Humana , which could possibly be the highest retail Medicare Benefit prescription drug plan, in keeping with Morgan Stanley. Analyst Michael Ha upgraded the inventory to obese from equal weight, saying Humana’s improved aggressive place will drive earnings development for the corporate. “At Humana’s Investor Day (9/15), the corporate unveiled a path to +48% cumulative earnings energy over the subsequent three years ($37 EPS by 2025) vs. +39% peer avg (UNH/ELV/CI/CVS) and a primary have a look at 2023 plan worth,” Ha wrote in a Tuesday be aware. “Primarily based on our proprietary evaluation of Medicare Benefit (MA) profit richness, we imagine Humana’s 2023 plan worth will increase are usually not solely the best in current historical past but additionally positions the corporate because the #1 Ranked Retail Medicare Benefit prescription drug (MA-PD) plan in profit richness amongst friends (vs. #5 rating within the earlier 4 years),” Ha added. Shares of Humana outperformed the broader market this yr, up 8%, however the analyst expects that the medical health insurance firm’s improved choices will drive membership development subsequent yr. “We now imagine 2023 is greater than only a one-year MA pricing reset however a structural enhancement to Humana’s MA profit providing creating a worth proposition that we imagine ought to present stronger membership development within the coming years (greater than double Particular person MA membership development to +10% yty 2023E from +4% yty 2022E) and a clearer path to $37 EPS by 2025,” Ha wrote. The analyst raised his value goal on Humana to $549 up from $494, implying that shares can advance roughly 9.6% from Monday’s closing value of $501.07. The inventory rose 1.2% in Tuesday premarket buying and selling. —CNBC’s Michael Bloom contributed to this report.