On Oct 16, major Wall Street analysts update their ratings for $UnitedHealth (UNH.US)$, with price targets ranging from $595 to $650.
Morgan Stanley analyst Erin Wright maintains with a buy rating, and adjusts the target price from $615 to $610.
J.P. Morgan analyst Lisa Gill maintains with a buy rating.
BofA Securities analyst Joanna Gajuk maintains with a buy rating, and adjusts the target price from $675 to $650.
Barclays analyst Andrew Mok CFA maintains with a buy rating, and maintains the target price at $604.
Wells Fargo analyst Steve Baxter maintains with a buy rating, and maintains the target price at $630.
Furthermore, according to the comprehensive report, the opinions of $UnitedHealth (UNH.US)$'s main analysts recently are as follows:
The initial forecast for UnitedHealth's FY25 EPS of approximately $30 at the upper end was characterized as a more cautious estimation compared to previous tendencies, influencing the stock's performance. Nevertheless, this prediction is seen as an easily surpassable minimum threshold by the company.
Following the decline in share value after guidance for 2025 fell short of expectations, the focus has been directed toward why UnitedHealth may be better situated compared to its competitors, with potential benefits arising from market share expansions. Despite the Medicare Advantage sector experiencing challenges with rates and reimbursements, UnitedHealth appears well-equipped to handle these pressures due to the profitability of its Medicare Advantage business. Post the company's Q3 report, earnings per share estimates were modestly revised, along with a corresponding adjustment to the valuation multiple.
The analyst notes that after UnitedHealth's Q3 results, expectations for the company's future earnings per share have been adjusted to account for continued 'elevated' Medicare coding intensity that has endured even after the resumption of prior authorization. Additionally, there are headwinds related to Medicaid acuity, but these are anticipated to be 'transitory'.
The third quarter results for UnitedHealth were not up to par, chiefly due to elevated medical costs and an initial EPS forecast for 2025 that fell short of projections. Despite a prior cautious stance on MA MCOs preceding the third-quarter earnings, there was an expectation that UnitedHealth could hasten EPS growth in 2025 to align with long-term goals. Nonetheless, persistent challenges, compounded by UnitedHealth's choice to continue organic investments, suggest that this scenario may be deferred until 2026.
Here are the latest investment ratings and price targets for $UnitedHealth (UNH.US)$ from 11 analysts:
Note:
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