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Investing.com - Leerink Partners raised its price target on UnitedHealth Group (NYSE:UNH) to $402.00 from $300.00 on Wednesday, while maintaining an Outperform rating on the healthcare giant’s stock. The company, currently valued at $315 billion, trades at a P/E ratio of 14.8x and shows strong financial fundamentals with an InvestingPro Financial Health Score of "GREAT."
The significant 34% increase in the price target comes as Leerink Partners sees "a more compelling upside case" for UnitedHealth, particularly if the Optum recovery accelerates more quickly than expected by 2027.
In its analysis, Leerink Partners suggested the possibility of UnitedHealth reaching $25 earnings per share in its upside scenario, substantially higher than the current consensus estimate of $21 EPS.
The firm noted that risks related to Medicare Advantage Star ratings have diminished, and it believes UnitedHealth has established a "solid floor" of $16 EPS for the current year.
Leerink Partners also expressed confidence in UnitedHealth’s "multi-year path forward for enterprise margins," prompting the firm to raise its out-year estimates to reflect its "growing optimism" about the company’s prospects.
In other recent news, UnitedHealth Group has reaffirmed its financial outlook for 2025, with UBS raising the company’s stock price target to $378 from $330 while maintaining a Buy rating. UBS highlighted the stability in UnitedHealth’s Medicare Advantage business and consistent Stars ratings for 2027. Furthermore, Bernstein SocGen reiterated an Outperform rating on UnitedHealth, noting that the company disclosed preliminary 2026 Medicare Advantage Stars results, with 78% of members expected to be in 4+ star plans. UnitedHealth’s CEO, Stephen Hemsley, recently met with Trump’s chief of staff to discuss Medicare and other issues, indicating the company’s ongoing engagement in healthcare policy discussions.
Meanwhile, Cigna’s stock rating was reiterated at Overweight by Cantor Fitzgerald, with a price target of $365. The firm noted that the finalized 2026 Marketplace rates align with payor proposals, although they are lower than the initially anticipated 30%+ increases. Cantor Fitzgerald maintains a cautious outlook on the 2026 marketplace environment despite successful rate negotiations. These developments reflect the current landscape and strategic moves of both UnitedHealth and Cigna in the healthcare sector.
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