RBC Capital has adjusted its price target for UnitedHealth (UNH, Financial), reducing it from $655 to $525 while maintaining an Outperform rating on the stock. This revision follows the company's recent first-quarter earnings report, which fell short of expectations.
The adjustment comes amidst UnitedHealth's challenges with lower-than-anticipated reimbursement levels due to reduced engagement from new Optum Health members. Additionally, there has been higher-than-expected utilization in the Medicare Advantage segment. Despite these hurdles, RBC Capital remains optimistic about the company's prospects. They believe that UnitedHealth's management has the insight needed to adjust pricing strategies by 2026 to address these issues effectively.
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 $573.64 with a high estimate of $677.00 and a low estimate of $490.00. The average target implies an upside of 32.04% from the current price of $434.43. 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 1.8, 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 $704.37, suggesting a upside of 62.14% from the current price of $434.425. 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.
