Bank of America has revised its price target for UnitedHealth (UNH, Financial), bringing it down to $560 from the previous $700, while maintaining a Buy rating on the stock. This adjustment reflects the firm's updated projections following a guidance revision and a reassessment of expected growth rates.
The firm now anticipates a 13% growth rate for 2026, situating it at the lower end of UnitedHealth's long-term guidance spectrum. However, there could be potential upside driven by the ongoing recovery within OptumHealth, a key segment of UnitedHealth's business.
The revised target incorporates both these lower growth estimates and an updated valuation multiple, according to the analyst commentary. Despite these adjustments, Bank of America remains optimistic about UnitedHealth's future performance, as indicated by its continued Buy rating on the shares.
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.
