Piper Sandler reiterates Overweight rating on UnitedHealth stock

Published 05/08/2025, 18:08
Piper Sandler reiterates Overweight rating on UnitedHealth stock

Investing.com - Piper Sandler has maintained its Overweight rating and $280.00 price target on UnitedHealth Group (NYSE:UNH) following a group investor meeting with the company’s leadership team. The stock, currently trading near its 52-week low at $249.73, has seen significant pressure with a 54.85% decline over the past six months, though InvestingPro analysis suggests it’s currently undervalued.

The meeting, held on Monday, included UnitedHealth Group President and CEO Stephen Hemsley, Chief Strategy and Growth Officer Dan Schumacher, UnitedHealthcare CEO Tim Noel, Optum Health CFO Selemon Asfaw, and VP of Investor Relations Julie Murphy.

According to Piper Sandler, UnitedHealth management addressed the company’s 2025 challenges with "humility and transparency" while outlining multi-year remediation plans beginning in 2026 that focus on actuarial conservatism and strategic planning.

The investment firm noted that UnitedHealth is investing in stakeholder education and engagement programs aimed at improving public perception and managing regulatory risks.

Piper Sandler expects the company’s efforts in 2026 and 2027 will restore most business segments to target margins while strengthening infrastructure to support high-single-digit organic earnings growth over the long term.

In other recent news, UnitedHealth Group has made significant leadership changes with the appointment of Wayne S. DeVeydt as the new Chief Financial Officer, effective September 2, 2025. DeVeydt takes over from John F. Rex, who will transition to a strategic advisor role for the CEO. DeVeydt brings extensive experience from his previous roles, including serving as a managing director at Bain Capital and holding key positions at Surgery Partners (NASDAQ:SGRY), Inc. and Anthem, Inc.

Additionally, UBS has reiterated its Buy rating for UnitedHealth Group, maintaining a price target of $330. This decision follows a detailed discussion with the company’s management, who emphasized a "return to basics" strategy to solidify operational foundations. Meanwhile, Bernstein SocGen Group has adjusted its price target for UnitedHealth to $337, down from $377, citing a lower earnings starting point for 2025. However, the firm remains optimistic about the company’s potential for earnings growth through strategic turnaround efforts. These developments highlight ongoing strategic adjustments within UnitedHealth Group as it navigates future growth.

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

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