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Investing.com - KeyBanc raised its price target on UnitedHealth Group (NYSE:UNH) to $400.00 from $350.00 on Wednesday, while maintaining an Overweight rating on the health insurance giant. According to InvestingPro data, UnitedHealth currently trades at a P/E ratio of 15.75, suggesting attractive valuation levels relative to its growth potential.
The price target adjustment comes as UnitedHealth shares have gained approximately 50% since early August lows following second-quarter results, significantly outperforming the S&P 500’s 7% rise during the same period.
KeyBanc attributed the stock’s recovery to two key factors: Berkshire Hathaway’s newly disclosed position in the company via a 13F filing, and UnitedHealth’s better-than-expected 2026 Stars results, which came in at 78% versus expectations of over 60%. InvestingPro analysis indicates the stock may be in overbought territory, with 10+ additional exclusive insights available to subscribers.
The research firm believes the strong Stars results could provide an incremental earnings per share tailwind in 2027 compared to prior management guidance, potentially adding 5% to EPS.
KeyBanc estimates UnitedHealth’s EPS power is in the $25-$30 range, with the stock currently trading at just 12-13 times this outlook, compared to its long-term multiple of 19-22 times, suggesting room for further appreciation despite acknowledging a full recovery will likely take time.
In other recent news, UnitedHealth Group is preparing to release its third-quarter earnings report on October 28, with analysts projecting earnings per share of $2.81 on revenue of $113.14 billion. Ahead of this, Bernstein has raised its price target for UnitedHealth to $433, maintaining an Outperform rating. Similarly, Leerink Partners increased its price target to $402, citing potential upside if the Optum segment recovers faster than anticipated by 2027. In other developments, UnitedHealthcare, a subsidiary of UnitedHealth Group, has announced its 2026 Medicare Advantage plans, ensuring coverage for 94% of eligible beneficiaries despite funding cuts. Additionally, UnitedHealthcare has entered into a national agreement with CNSide Diagnostics, a subsidiary of Plus Therapeutics, to cover the CNSide Cerebrospinal Fluid Tumor Cell Enumeration test, effective September 15, 2025. This agreement will provide coverage for over 51 million people across the United States.
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