TD Cowen analyst Ryan Langston initiates coverage on $UnitedHealth (UNH.US)$ with a buy rating, and sets the target price at $609.
According to TipRanks data, the analyst has a success rate of 63.6% and a total average return of 5.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $UnitedHealth (UNH.US)$'s main analysts recently are as follows:
The early indication of UnitedHealth's FY25 EPS being approximately $30 at the high-end was viewed as a more conservative estimate than previous practices, which appears to be influencing the stock's performance. However, it is considered 'a low bar' that the company should be able to surpass with relative ease.
Following the recent sell-off of UnitedHealth's stock influenced by guidance figures that fell short of expectations, there is a belief that the company stands in a more favorable position compared to its competitors, with potential for growth through increased market share. Despite the Medicare Advantage industry encountering challenges with rates and reimbursements, UnitedHealth's Medicare Advantage business remains profitable, allowing for a strategic response to these pressures. After the release of UnitedHealth's third-quarter report, there has been a slight reduction in earnings per share estimates and an adjustment in the valuation multiple applied to these revised estimates.
The analyst has revised the earnings per share forecast for FY25 down by $1.11 to $29.70 and for FY26 by $1.14 to $33.20, in light of the continued 'elevated' Medicare coding intensity, even after the resumption of prior authorization, along with Medicaid acuity challenges. However, these issues are expected to be 'transitory'.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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