UnitedHealth (UNH) Shares Surge on Increased Medicare Reimbursements

Apr 08, 2025

UnitedHealth Group (UNH, Financial) stock surged nearly 6% in premarket trading due to an increase in Medicare Advantage reimbursement rates.
Analysts project an average target price of $630.38, indicating a potential 20.14% upside.
The current consensus rating for UNH is "Outperform," with a GF Value suggesting a 35.14% potential upside.

UnitedHealth Group (UNH) shares experienced a notable rise of almost 6% in premarket trading. This increase follows a significant announcement by the U.S. government regarding a 5.06% hike in Medicare Advantage reimbursement rates for 2026. The adjustment exceeds previous forecasts, providing much-needed relief for health insurers facing escalating medical costs. Alongside UnitedHealth, other major players such as Centene (CNC) and CVS Health (CVS) also reported gains between 5% and 6%.

Wall Street Analysts Forecast

With insights from 26 analysts, UnitedHealth Group Inc (UNH, Financial) is anticipated to reach an average target price of $630.38 over the next year. Projections range from a high of $700.00 to a low of $518.76. This suggests a promising upside potential of 20.14% from the current stock price of $524.70. Investors looking for detailed estimates can explore further on the UnitedHealth Group Inc (UNH) Forecast page.

The consensus recommendation from 30 brokerage firms positions UnitedHealth Group Inc (UNH, Financial) with an average brokerage recommendation of 1.7. This places the stock in the "Outperform" category, with the scale ranging from 1 (Strong Buy) to 5 (Sell).

According to GuruFocus estimates, the anticipated GF Value for UnitedHealth Group Inc (UNH, Financial) in one year is projected at $709.07. This represents a potential upside of 35.14% from its current trading price of $524.7. The GF Value is a critical metric by GuruFocus, reflecting the fair market value of the stock, derived from historical trading multiples, business growth trajectories, and projected business performance. Additional insights are available on the UnitedHealth Group Inc (UNH) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.