Humana, UnitedHealth downgraded while Cigna upgraded as part of hedge against health policy uncertainty

Shares of Humana Inc. fell 1.0% in midday trading, to pace the declines in its health care-sector peers, after BMO Capital analyst Matt Borsch downgraded the health-care benefits plan company, citing a re-rating of companies given political and health policy uncertainty. Borsch cut his rating on Humana to market perform, after being at outperform for at least the past two years, and slashed his price target to $290 from $345. Borsch also downgraded UnitedHealth Group Inc. to market perform from outperform, and cut his price target to $249 from $292. Meanwhile, he upgraded Cigna Corp. to outperform from market perform. He wrote in a note to clients that the ratings changes reflect his "new ratings bias toward lower valuation as well business mix that we think represents a better 'hedge' against political and health policy uncertainty." Humana's stock has shed 3.8% over the past three months, UnitedHealth shares have tumbled 11.5% and Cigna's stock has lost 3.7%, while the SPDR Health Care Select Sector ETF has slipped 2.6% and the Dow Jones Industrial AVerage has tacked on 1.4%.

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