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Investing.com - Bernstein SocGen Group has raised its price target on UnitedHealth Group (NYSE:UNH) to $379.00 from $337.00, while maintaining an Outperform rating on the stock. This comes as InvestingPro data shows Elevance Health trading at an attractive P/E ratio of 13.1x, with a "GREAT" overall financial health score of 3.13.
The firm views diversified managed care organizations (MCOs) like UnitedHealth Group and Elevance Health as secure investment options amid a sector-wide recovery opportunity.
Bernstein indicated a preference for UnitedHealth Group in the short term, though it sees Elevance Health as potentially performing better over a full one-year outlook.
The preference for Elevance Health over the longer term is based on what the firm describes as a more attractive valuation entry point.
Bernstein noted that UnitedHealth Group represents solid long-term value at current levels with significant earnings upside potential over time.
In other recent news, Elevance Health has reaffirmed its earnings guidance for 2025, projecting shareholders’ earnings to be approximately $24.10 per diluted share, with an adjusted outlook of about $30.00 per diluted share. The company also anticipates maintaining a benefit expense ratio of around 90.0% for the full year. Additionally, Elevance Health announced the appointment of Steve Collis to its board of directors, effective August 1, 2025. Collis, who is the Executive Chairman of Cencora, will also serve on the Audit and Finance Committees.
In analyst updates, UBS reiterated its Buy rating on Elevance Health, maintaining a $435 price target despite the company reducing its earnings per share outlook by $4.50. Meanwhile, Bernstein lowered its price target for Elevance to $445 from $487, citing pressures from the Affordable Care Act and Medicaid. This adjustment came after Elevance’s second-quarter 2025 results showed adjusted earnings per share of $8.84, aligning with consensus estimates. The company’s revenue for the quarter was $49.8 billion, exceeding expectations by approximately 2.8%, largely due to increased pharmacy revenues and premiums per policy.
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