UnitedHealth Group: A Strong Buy on Sustained Growth and Resilience

In a report released yesterday, Kevin Fischbeck from Bank of America Securities reiterated a Buy rating on UnitedHealth (UNH – Research Report), with a price target of $675.00.

Kevin Fischbeck has given his Buy rating due to a combination of factors that indicate UnitedHealth Group’s strong future performance. The company’s commitment to achieving a 13-16% growth in earnings per share (EPS) over the long term has been highlighted as a key reason, underscoring their confidence in the company’s asset portfolio and their ability to grow sustainably. Fischbeck acknowledges that UnitedHealth’s approach to value-based care is not only well-established but also poised for further expansion, offering a significant growth trajectory for the coming years. Additionally, the company’s robust business strategy allows for adaptability in an evolving market, further justifying the positive outlook.
The report also points out that UnitedHealth has managed cost trends effectively, aligning with their initial projections and maintaining target margins where peers may not be as successful. Looking ahead to 2025, the company is expected to continue its growth while maintaining stable margins, benefiting from disciplined pricing and sustainable benefit design. Fischbeck notes UnitedHealth’s sound positioning in value-based care, which should help navigate cost trends and coding adjustments. Moreover, the recovery of Change Healthcare post-cyberattack and the return to normal claims visibility provides additional assurance in the company’s operational resilience and supports the Buy rating with a price objective of $675.00.

Based on the recent corporate insider activity of 141 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UNH in relation to earlier this year.

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UnitedHealth (UNH) Company Description:

UnitedHealth Group, Inc. is a diversified healthcare company, offering healthcare coverage and benefits services through UnitedHealthcare, and information and technology-enabled health services through Optum. The company was founded by Richard T. Burke in January 1977 and is headquartered in Minneapolis, MN.