UBS has revised its price target for UnitedHealth (UNH, Financial), lowering it from $612 to $525, while maintaining a Buy rating on the stock. This adjustment follows a disappointing first quarter, influenced by higher utilization rates within the Group Medicare Advantage segment. Additionally, performance has been hindered by ongoing changes in the Medicare Advantage risk model, coupled with market disruptions linked to Optum Health.
The financial institution anticipates a recovery in 2026, projecting performance at the upper range of UnitedHealth's long-term guidance. UBS attributes the current underperformance to this year's challenging results but remains optimistic about recovery due to decisive actions undertaken by UnitedHealth. The analyst emphasizes that the company is actively reshaping its benefits strategy to ensure a return to long-term growth. This recovery path is seen as achievable as UnitedHealth continues to adapt its business practices to overcome the current market hurdles.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for UnitedHealth Group Inc (UNH, Financial) is $620.16 with a high estimate of $703.00 and a low estimate of $513.00. The average target implies an upside of 36.57% from the current price of $454.11. More detailed estimate data can be found on the UnitedHealth Group Inc (UNH) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, UnitedHealth Group Inc's (UNH, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for UnitedHealth Group Inc (UNH, Financial) in one year is $707.61, suggesting a upside of 55.82% from the current price of $454.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the UnitedHealth Group Inc (UNH) Summary page.
