Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on Cigna (NYSE:CI) with a price target of $365.00 as 2026 Marketplace rates are finalized. According to InvestingPro data, sector leader UnitedHealth Group maintains a "GREAT" overall financial health score, with particularly strong profitability metrics and a solid market position in the healthcare providers industry.
The research firm notes that the majority of 2026 Marketplace rates align with payor proposals, though they fall below the 30%+ increases initially hoped for next year. Cantor maintains a cautious outlook on the 2026 marketplace environment despite signs that payors have successfully negotiated rates. For deeper insights into healthcare sector valuations and comprehensive analysis, InvestingPro subscribers can access detailed research reports covering 1,400+ top stocks, including major healthcare insurers.
The firm views the current data as underdeveloped, with final rates established for less than 25% of membership. Political uncertainty remains a significant factor, particularly regarding the CMS Marketplace Integrity & Affordability Final Rule and the scheduled expiration of premium-enhanced subsidies on December 31, 2025.
Analysis of the first 15 finalized states indicates payors are receiving final rates within 1% of what they proposed. Weighted-average estimates show Molina Healthcare final rates at +20 basis points versus proposed, Cigna at -10 basis points, UnitedHealth at -10 basis points, Centene at +30 basis points, and Elevance Health at +40 basis points.
The firm identified less-flexible states as New York, where Centene proposed an 8.1% increase but received a 2.9% final rate and UnitedHealth proposed 36.6% but received 9.1%, along with North Carolina and Indiana.
In other recent news, UnitedHealth Group has been actively engaging with government officials, as CEO Stephen Hemsley met with Trump’s chief of staff, Susie Wiles, to discuss Medicare and other issues. UBS has increased its price target for UnitedHealth Group to $378 while maintaining a Buy rating, following the company’s reaffirmation of its 2025 outlook and consistent Stars ratings for 2027. Bernstein SocGen Group has reiterated its Outperform rating on UnitedHealth, setting a price target of $379, and highlighting that 78% of Medicare Advantage members will be in 4+ star plans by 2026. This performance is consistent with UnitedHealth’s historical results and aligns with expectations. Morgan Stanley has also reiterated an Overweight rating on the company, citing optimism about improvements in Medicare Advantage and Optum Health profits. These developments suggest a stable outlook for UnitedHealth Group as it continues to focus on its Medicare Advantage program.
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