Citigroup Raises Humana 2011 EPS Projection

Citigroup is raising its Humana Inc. (NYSE: HUM) 2011 EPS projection by $0.10, to $6.10, because of the Concentra acquisition.

“We're lukewarm on the transaction, as its chief attribute seems to be the small diversification it brings to Humana's operations,” Citigroup writes.

“The accretion from the deal is modest, and there don't appear to be a lot of synergies with Humana's current business, since the range of services provided today by Concentra's medical centers are limited relative to the complex needs of Humana's senior population.”

Humana currently trades at $56.04.