Raymond James has revised its price target for UnitedHealth (UNH, Financial) shares downward to $540 from a previous target of $635 while maintaining a Strong Buy rating. This adjustment follows UnitedHealth's recent report of challenges in its Medicare Advantage sector under its Optum Health branch. The company attributes these issues to higher-than-expected utilization levels and lower risk scores from new enrollees transitioning from non-UnitedHealth Medicare Advantage plans.
As a result of these challenges, UnitedHealth has also downgraded its adjusted earnings per share (EPS) forecast for 2025. The adjustment is primarily related to the specific difficulties the company is facing, according to the analyst. Despite these setbacks, the firm maintains a positive outlook on UnitedHealth's 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.
