Fed Governor Adriana Kugler to resign
On Wednesday, Cantor Fitzgerald analysts reaffirmed an Overweight rating for UnitedHealth Group stock (NYSE: NYSE:UNH) with a price target of $440.00. The analysts expressed confidence that the company’s margins will eventually return to normal levels, although they anticipate a slower recovery than initially expected. With a current P/E ratio of 12.5 and a market capitalization of $273 billion, InvestingPro analysis suggests the stock is currently trading below its Fair Value.
According to the analysts, while UnitedHealth and other payors expect margins to normalize by 2025, Cantor Fitzgerald projects a return to normal by 2026. This reflects a more cautious outlook compared to the company’s own messaging, which suggests a quicker timeline. The company maintains strong fundamentals, with revenue growth of 8.1% in the last twelve months.
The analysts noted that losses exceeding company guidance have likely increased margin pressure due to redetermination, affecting expectations for 2024. Despite these challenges, they remain optimistic about resolving these issues over time.
The reaffirmation of the Overweight rating and price target indicates continued confidence in UnitedHealth Group’s long-term performance, even amidst current margin pressures. The analysts’ insights highlight the complexities facing the company as it navigates the path to margin normalization.
In other recent news, UnitedHealth Group reported several significant developments that are of interest to investors. The company announced changes in leadership, with the cancellation of performance-based restricted stock units for former CEO Andrew Witty, following his retirement. During its 2025 Annual Meeting of Shareholders, UnitedHealth Group elected nine directors and approved Deloitte & Touche LLP as its independent registered public accounting firm. Shareholders also approved an advisory vote on executive compensation but rejected a proposal on excessive golden parachutes.
In terms of financial outlook, Bernstein reaffirmed its Outperform rating on UnitedHealth Group, with a price target of $377, citing the new CEO Steve Hemsley’s focus on underwriting culture and strategic decisions. Piper Sandler, however, lowered its price target to $353 while maintaining an Overweight rating, reflecting the company’s strategic turnaround efforts. Meanwhile, TD Cowen maintained a Hold rating with a $308 price target, noting the company’s cautious outlook for 2025 and strategic plans for 2026. Lastly, UnitedHealth Group declared a cash dividend of $2.21 per share, payable on June 24, 2025, as part of its strategy to deliver shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.