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Investing.com - UBS has reiterated its Buy rating and $330.00 price target on UnitedHealth Group (NYSE:UNH) following an investor lunch with the company’s management team. According to InvestingPro data, the stock appears undervalued, trading at a modest 10.3x P/E ratio with a 3.72% dividend yield, near its 52-week low of $234.60.
UnitedHealth is taking a "return to basics approach" as it conducts a deeper examination of all aspects of its business operations, according to UBS analyst AJ Rice’s report.
The healthcare giant is deliberately slowing near-term growth to ensure its businesses establish firmer footing before pursuing expansion again, with management expecting its benefits business to recover most quickly.
OptumHealth should see some benefits from improvements in UnitedHealthcare, though management acknowledged that certain initiatives will take longer to yield results, while OptumInsight requires better management and additional investments despite introducing new products.
From a corporate perspective, UnitedHealth plans to take a more proactive approach to public communications and brand reputation, while also increasing investments in artificial intelligence.
In other recent news, UnitedHealth Group has announced a leadership change with Wayne S. DeVeydt set to become the new Chief Financial Officer, effective September 2, 2025. This appointment follows John F. Rex’s transition to a strategic advisor role to the CEO. In the financial sector, Bernstein SocGen Group has lowered its price target for UnitedHealth Group to $337, citing a "lower earnings starting point" for 2025, although the firm maintains an Outperform rating due to anticipated earnings growth potential. Meanwhile, Baird has downgraded UnitedHealth Group from Neutral to Underperform, reducing its price target to $198. This downgrade stems from concerns related to OptumHealth, highlighted in UnitedHealth’s second-quarter 2025 earnings report. Additionally, Fitch Ratings has revised UnitedHealth Group’s outlook to negative from stable, affirming the insurer’s financial strength ratings at ’AA-’. These developments reflect ongoing shifts within UnitedHealth Group’s leadership and financial outlook.
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