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Investing.com - Bernstein SocGen Group lowered its price target on UnitedHealth Group (NYSE:UNH) to $337.00 from $377.00 on Monday, while maintaining an Outperform rating on the healthcare giant. The stock, currently trading near its 52-week low at $240.05, has seen a significant decline of about 56% over the past six months, according to InvestingPro data.
The firm cited a "lower earnings starting point" for UnitedHealth in 2025 as the primary reason for the reduced target, though it remains positive on the company’s earnings growth potential driven by both company-specific and sector-wide turnaround efforts. Despite recent challenges, UnitedHealth maintains strong fundamentals with a P/E ratio of 10.3 and has consistently paid dividends for 33 consecutive years.
Bernstein SocGen expressed approval of the steps taken by UnitedHealth’s new CEO, including key talent changes such as appointing a new head of Optum, a new CFO, and other leadership adjustments throughout the organization.
The firm also highlighted UnitedHealth’s efforts to reset its underwriting culture, including planned reductions in 2025 growth for Optum Health and exits from certain Medicare Advantage markets in 2026.
Bernstein SocGen further noted the company’s removal of "portfolio restructuring low quality earnings drivers" as another positive step in UnitedHealth’s operational and cultural transformation.
In other recent news, UnitedHealth Group has announced the appointment of Wayne S. DeVeydt as its new Chief Financial Officer, effective September 2, 2025. DeVeydt will replace John F. Rex, who will transition to a strategic advisor role to the CEO. DeVeydt brings a wealth of experience from his previous roles, including positions at Bain Capital and Anthem, Inc. Meanwhile, Baird has downgraded UnitedHealth Group from Neutral to Underperform, citing concerns about OptumHealth that were highlighted in the company’s second-quarter 2025 earnings report. Additionally, Fitch Ratings has revised UnitedHealth’s outlook to negative from stable, though it maintained the insurer’s financial strength ratings at ’AA-’. KeyBanc has also adjusted its price target for UnitedHealth, lowering it from $400 to $350, while maintaining an Overweight rating. The firm noted the importance of UnitedHealth establishing a credible earnings per share baseline in its recent earnings report. These developments reflect ongoing changes and challenges within UnitedHealth Group.
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