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Investing.com - UBS raised its price target on UnitedHealth Group (NYSE:UNH) to $378.00 from $330.00 while maintaining a Buy rating on the stock. The healthcare giant, with a market capitalization of $310 billion and a P/E ratio of 14.72, has shown strong momentum with a 13% gain over the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The price target increase follows UnitedHealth’s recent reaffirmation of its 2025 outlook and indication of consistent Stars ratings for 2027, despite previous market concerns.
UBS noted that these developments should boost confidence in the stock and in the company’s margin improvement plans for Medicare Advantage.
The research firm acknowledged that UnitedHealth still faces headwinds related to v28 in 2026, though management has stated it expects earnings growth next year despite not yet providing specific 2026 EPS guidance.
UBS identified the specificity regarding the 2026 outlook as one of the last remaining unknowns for the company but believes expectations have been set conservatively thus far.
In other recent news, UnitedHealth Group has announced significant developments regarding its Medicare Advantage star ratings. The company disclosed that approximately 78% of its Medicare Advantage members will be in plans rated 4 stars or higher by 2026, aligning with expectations and historical trends. This announcement has led Truist Securities to raise its price target for UnitedHealth from $310 to $365 while maintaining a Buy rating.
Additionally, Barclays has reiterated an Overweight rating with a price target of $352, citing stable star ratings as a key factor. Morgan Stanley also maintained an Overweight rating, with a price target of $325, expressing confidence in UnitedHealth’s turnaround efforts driven by improvements in Medicare Advantage and Optum Health profits. Bernstein SocGen Group has reiterated an Outperform rating with a price target of $379, emphasizing the company’s stability ahead of its third-quarter earnings.
These ratings and price target updates reflect a positive outlook from analysts regarding UnitedHealth’s future performance based on its recent Medicare Advantage star ratings data.
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