Key Highlights:
- UnitedHealth (UNH, Financial) adjusts its medical care ratio guidance to 87.5% due to increased senior medical usage.
- Despite a downward revision in 2025 earnings, UNH maintains its revenue target, expecting strong performance in UnitedHealthcare and OptumRx.
- Analysts predict potential stock price growth, with an average target indicating a 41.32% upside from the current price.
Revised Earnings and Revenue Guidance
UnitedHealth Group Inc. (UNH) has revised its full-year medical care ratio guidance, increasing it to 87.5% from the previous 86.5%. This adjustment comes as the company reports higher medical service usage among seniors. While UNH has reduced its 2025 earnings forecast, it remains confident in its ability to achieve a revenue target of $450 billion to $455 billion. The company anticipates that the robust performance in segments like UnitedHealthcare and OptumRx will help offset the challenges faced by OptumHealth.
Wall Street Analysts Forecast
According to data gathered from 25 financial analysts, the one-year price target for UnitedHealth Group Inc. is, on average, $639.88. This projection includes a high estimate of $703.00 and a low of $518.76. These targets suggest a potential upside of 41.32% from the current trading price of $452.79. For deeper insight into these predictions, please visit the UnitedHealth Group Inc (UNH, Financial) Forecast page.
Analysts' Recommendations
The consensus among 29 brokerage firms places UnitedHealth Group Inc.'s (UNH, Financial) average recommendation at 1.7, categorizing it as "Outperform." This rating system positions 1 as a Strong Buy and 5 as a Sell, indicating a strong market performance expectation from these analysts.
GuruFocus Valuation
Based on GuruFocus' assessment, the estimated GF Value for UNH in the coming year stands at $711.11. This valuation suggests a potential increase of 57.05% from the current price of $452.79. The GF Value is a unique estimation provided by GuruFocus, calculated using historical trading multiples, past business growth rates, and anticipated future performance. For more comprehensive data, please explore the UnitedHealth Group Inc (UNH, Financial) Summary page.
