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Investing.com - BofA Securities has reduced its price target on UnitedHealth Group (NYSE:UNH) to $300.00 from $350.00 while maintaining a Neutral rating on the stock. The stock, currently trading at $267.43, has experienced a significant decline of nearly 47% over the past six months, according to InvestingPro data.
The price target adjustment reflects BofA’s assessment that UnitedHealth’s pace of improvement will likely be slower than previously expected, according to analyst notes from the firm.
UnitedHealth has communicated expectations for "solid but moderate" earnings growth in 2026, with acceleration anticipated in 2027 and subsequent years, the research note indicated.
While the healthcare giant did not explicitly confirm its long-term growth target of 13-16%, BofA noted that the company pointed toward eventually returning to "low double-digit ranges" and historical growth levels. This outlook is based on "reasonable growth from well run businesses, compounding efficiency gains, deploying capital for shareholders and M&A."
BofA Securities also highlighted that UnitedHealth has become "much more open about segment margins and issues," which the firm believes creates better understanding of the company’s business drivers.
In other recent news, UnitedHealth Group’s second-quarter earnings call disclosed a mixed financial performance. The company reported earnings per share (EPS) of $4.08, which fell short of the anticipated $4.45, representing an 8.31% surprise miss. Despite this, UnitedHealth saw a 13% increase in revenue year-over-year, reaching $112 billion. This earnings miss has raised concerns among investors. There were no significant mergers or acquisitions announced during this period. Analyst firms have yet to provide any upgrades or downgrades following the earnings report. UnitedHealth’s financial results are part of the latest developments affecting the company.
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