On Oct 17, 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 maintains the target price at $610.
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.
UBS analyst A.J. Rice maintains with a buy rating, and adjusts the target price from $640 to $650.
Deutsche Bank analyst George Hill maintains with a buy rating, and adjusts the target price from $632 to $595.
Furthermore, according to the comprehensive report, the opinions of $UnitedHealth (UNH.US)$'s main analysts recently are as follows:
UnitedHealth's early indication of FY25 EPS being approximately $30 at the high-end, which was seen as a more conservative forecast compared to previous practices, appeared to exert pressure on the company's shares. Nonetheless, this forecast is perceived as 'a low bar' that the company is expected to surpass with ease, according to an analyst in a post-earnings briefing.
After the stock experienced a sell-off following guidance for 2025 that didn't meet expectations, analysts maintain a positive outlook on UnitedHealth, highlighting its stronger positioning compared to competitors and the potential for gains in market share. Despite the pressures on rates and reimbursements within the Medicare Advantage industry, UnitedHealth is perceived to be in a favorable position to navigate these challenges due to its profitable Medicare Advantage business. Nonetheless, there has been a slight reduction in earnings per share estimates, as well as in the applied multiple, subsequent to the company's third-quarter financial report.
The reduction in the forecast for UnitedHealth's FY25 and FY26 EPS is to account for the sustained 'elevated' Medicare coding intensity beyond the resumption of prior authorization and Medicaid acuity challenges. These conditions are anticipated to be temporary, according to the analyst's perspective shared with investors.
The firm's assessment indicates that UnitedHealth's Q3 outcomes were unsatisfactory, chiefly due to elevated medical expenses and an initial EPS forecast for 2025 that did not meet expectations. Previously, there was a cautious stance on MA MCOs heading into Q3 earnings, yet there was optimism that UnitedHealth could return to long-term EPS growth targets by 2025. Nonetheless, persistent challenges, coupled with UnitedHealth's choice to continue organic investments, suggest that the realization of this growth expectation may be deferred to 2026.
Here are the latest investment ratings and price targets for $UnitedHealth (UNH.US)$ from 10 analysts:
Note:
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