Truist Securities has adjusted its price target for UnitedHealth Group (UNH, Financial), lowering it from $660 to $580 following the company's first-quarter earnings shortfall and updated fiscal guidance. Despite these setbacks, the firm continues to hold a Buy rating on UnitedHealth's shares.
The revised forecast is primarily due to unexpected changes in member profiles at Optum Health and an increase in Medicare Advantage care activities, which influenced UnitedHealth's fiscal year 2025 projections. Even with these developments, Truist remains optimistic about the company's future prospects. The firm anticipates measures will be implemented to address the member profile changes.
Truist also points out that the early emergence of certain trends in Medicare Advantage, coupled with a more favorable Final rate than expected, could provide UnitedHealth with increased flexibility as it moves towards 2026.
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.
