Bernstein raises UnitedHealth stock price target to $433 ahead of earnings

Investing.com - Bernstein SocGen Group raised its price target on UnitedHealth Group (NYSE:UNH) to $433.00 from $379.00 on Wednesday, while maintaining an Outperform rating on the health insurance giant ahead of its third-quarter earnings report. The company, currently trading at a P/E ratio of 15.75, shows strong financial fundamentals with an InvestingPro Financial Health Score of "GREAT."

UnitedHealth is scheduled to report its quarterly results on October 28, with analysts expecting earnings per share of $2.81 on revenue of $113.14 billion, according to Street Insider data. The company has demonstrated solid performance with revenue growth of 9.7% over the last twelve months, generating over $25 billion in free cash flow.

The company has missed expectations on both earnings and revenue in its April and July 2025 reports and hasn’t exceeded revenue estimates since July 2024.

Bernstein expects UnitedHealth to achieve third-quarter results at or slightly above consensus expectations, with adjusted EPS of $2.84 and a medical loss ratio of 90.7%.

The investment firm cited an attractive valuation and expectations for "outsized EPS growth recovery over the next 4 years" as UnitedHealth recovers from trough margins in Medicare Advantage and Medicaid following what it described as an "MA rate shock and withdrawal of competition." As a prominent player in the Healthcare Providers & Services industry, UnitedHealth has maintained dividend payments for 33 consecutive years, currently offering a 2.43% yield.

In other recent news, UnitedHealthcare has announced its 2026 Medicare Advantage plan offerings, continuing to provide coverage to 94% of eligible beneficiaries despite funding cuts to the Medicare program. The company remains the nation’s largest Medicare Advantage carrier. Additionally, UnitedHealthcare Insurance Company has entered into a national agreement with CNSide Diagnostics, a subsidiary of Plus Therapeutics, to provide coverage for the CNSide Cerebrospinal Fluid Tumor Cell Enumeration test. This agreement, effective September 15, 2025, will extend coverage to over 51 million people in the United States.

In analyst updates, Leerink Partners has raised its price target for UnitedHealth Group to $402, maintaining an Outperform rating. The firm cites potential upside if Optum’s recovery accelerates faster than anticipated by 2027. Meanwhile, UBS has upheld its Buy rating and $378 price target for UnitedHealth Group, noting the company’s steady management of changes in its Medicare Advantage business. UnitedHealth has reported no adjustments to its second-half expectations regarding cost trends across its Medicaid and Commercial segments.

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