Oppenheimer has revised its price target for UnitedHealth Group (UNH, Financial), lowering it to $600 from the previous target of $640, while maintaining an Outperform rating on the stock. Despite UnitedHealth's first-quarter performance aligning closely with expectations, the company has adjusted its full-year 2025 guidance downward. The new earnings projection is set between $26.00 and $26.50, a significant decrease from the initial estimate range of $29.50 to $30.00.
A key factor influencing this guidance revision is the performance of OptumHealth, where revenue-related issues, such as coding inconsistencies and changes in Medicare Advantage (MA) risk models, have been highlighted. Additionally, UnitedHealth experienced a higher cost trend towards the end of the first quarter, which, despite potential seasonal influences, has been cautiously projected forward into 2025’s guidance and 2026 MA bids.
Oppenheimer remains confident in UnitedHealth's long-term operational strength, expressing belief that the company will effectively manage these challenges throughout 2025, minimizing their impact by 2026. Despite the current adjustments, UnitedHealth continues to be seen as a leading operator in its sector.
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 $617.16 with a high estimate of $703.00 and a low estimate of $513.00. The average target implies an upside of 35.90% 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.
