KeyBanc lowers UnitedHealth stock price target to $400 from $450

On Monday, KeyBanc analysts adjusted their outlook for UnitedHealth Group (NYSE: NYSE:UNH), reducing the price target to $400 from the previous $450. Despite this revision, the analysts maintained an Overweight rating on the stock. According to InvestingPro data, UNH currently trades at a P/E ratio of 12.5x, suggesting an attractive valuation relative to its near-term earnings growth potential.

The adjustment comes after the analysts reassessed their model and provided updated insights following discussions with the company and a review of recent developments. The analysts noted that the current valuation of UnitedHealth Group might suggest an overly pessimistic outlook, particularly regarding the company’s Medicare Advantage (MA) business margins. This view is supported by technical indicators, with InvestingPro analysis showing the stock in oversold territory, while maintaining strong fundamentals with an EBITDA of $36.2 billion over the last twelve months.

KeyBanc analysts expressed confidence that the issues affecting the company in 2025 are likely to be resolved starting in 2026. They emphasized the need for patience amid current uncertainties but highlighted the potential for an attractive setup over the next 12 months or more.

UnitedHealth Group, regarded as a leading managed care organization (MCO), is currently trading at what the analysts describe as a historically discounted valuation due to depressed margins. The analysts believe this valuation dislocation is unlikely to persist in the long term. The company’s strong financial position is evidenced by its 33-year track record of consistent dividend payments and impressive free cash flow yield. InvestingPro’s comprehensive analysis reveals 12 additional key insights about UNH’s valuation and growth prospects in its detailed Pro Research Report.

In other recent news, UnitedHealth Group announced the resignation of Andrew Witty from its board of directors, effective immediately. This change was disclosed in a regulatory filing with the Securities and Exchange Commission and comes just before the company’s annual shareholder meeting. Meanwhile, JPMorgan reiterated its Overweight rating for UnitedHealth, setting a price target of $405, despite recent media scrutiny over the company’s value-based contracts. The firm noted that previous investigations into these practices did not result in charges from the Department of Justice, maintaining confidence in UnitedHealth’s fundamentals.

Wolfe Research also maintained an Outperform rating for UnitedHealth, with a price target of $390. The firm highlighted the company’s earnings potential, despite the withdrawal of its 2025 guidance, and emphasized the importance of OptumHealth’s performance. Bernstein SocGen Group echoed this sentiment, maintaining its Outperform rating with a $377 price target and highlighting Optum Health’s significant role in UnitedHealth’s value proposition. The firm projected a compound annual growth rate for Optum Health, focusing on margin improvements.

Additionally, UBS shared insights from its 2025 Healthcare Insurance Symposium, noting the rising costs of employee healthcare as a major concern for employers. The symposium underscored the need for companies to balance comprehensive benefits with cost control, as employers seek innovative strategies to manage these pressures. As the healthcare landscape evolves, UnitedHealth Group remains a focal point for investors and analysts navigating these industry challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.