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Investing.com - Morgan Stanley (NYSE:MS) has lowered its price target on UnitedHealth Group (NYSE:UNH) to $325.00 from $342.00 while maintaining an Overweight rating on the stock. The healthcare giant, currently trading at $304.24, has seen its shares decline 39.17% year-to-date, though InvestingPro data shows it maintains a P/E ratio of 13.03 and healthy revenue growth of 9.7%.
The price target reduction follows what Morgan Stanley described as "2Q revelations" that suggest a more prolonged turnaround for the healthcare giant than previously anticipated.
Despite the near-term adjustment, Morgan Stanley’s analysis includes an "illustrative bridge to 2027 EPS" that indicates potential upside to consensus estimates as UnitedHealth’s recovery progresses.
The firm noted it has reduced its earnings estimates to reflect more conservative assumptions about UnitedHealth’s performance in the immediate future.
Morgan Stanley analyst Erin Wright characterized UnitedHealth as a "more prolonged turnaround story" but maintained the Overweight rating, suggesting continued confidence in the company’s long-term prospects. The company maintains strong fundamentals with a market cap of $274.8B and has consistently paid dividends for 33 consecutive years.
In other recent news, UnitedHealth Group has announced a quarterly cash dividend of $2.21 per share, payable on September 23, 2025, to shareholders of record as of September 15, 2025. This decision follows an influx of investment from Warren Buffett’s Berkshire Hathaway (NYSE:BRKa), which disclosed a significant stake in the company, purchasing 5 million shares during the second quarter. Other notable investors, such as David Tepper’s Appaloosa Management and several billionaire family offices, have also increased their positions in UnitedHealth. Analysts have been active in adjusting their views on UnitedHealth, with Bernstein lowering its price target to $377 while maintaining an Outperform rating. Bernstein’s adjustment reflects expectations of extended performance weakness into 2025 and beyond. Conversely, BofA Securities raised its price target to $325 from $290, citing improved peer multiples. Piper Sandler has maintained its Overweight rating and a $280 price target after meeting with UnitedHealth’s leadership team. These developments highlight the varied perspectives on UnitedHealth’s future performance among investors and analysts.
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