UnitedHealth stock price target lowered to $350 from $400 at KeyBanc

Investing.com - KeyBanc lowered its price target on UnitedHealth Group (NYSE:UNH) to $350 from $400 while maintaining an Overweight rating on the stock. The healthcare giant, currently trading at $262.07, appears undervalued according to InvestingPro analysis, with the stock near its 52-week low of $248.88.

The firm cited the need for UnitedHealth to establish a credible earnings per share baseline in its second-quarter report, which KeyBanc believes was accomplished despite the lower starting point.

KeyBanc reduced its 2026 estimated EPS for UnitedHealth by 20%, but noted the company’s outlook contains areas of conservatism, particularly a higher Medicare Advantage cost assumption for the second half of 2025 compared to the second quarter.

The firm indicated that comments regarding the 2027 EPS trajectory suggest positive implications for the company’s Stars ratings, which will be announced in early October and represent the next catalyst for the stock.

KeyBanc acknowledged that UnitedHealth remains a controversial stock requiring investor patience, but expressed increased confidence following the second-quarter results that margins and EPS may have reached bottom.

In other recent news, UnitedHealth Group has been the focus of several analyst updates following its recent earnings announcements. RBC Capital adjusted its price target for UnitedHealth Group to $286 from $355, citing margin headwinds and new earnings guidance, though it maintained an Outperform rating. Meanwhile, Cantor Fitzgerald kept its Overweight rating, setting a price target of $440, while significantly lowering its 2025 earnings per share estimate to $16.01, with projections of growth in subsequent years. UBS also maintained a Buy rating with a $330 price target, noting UnitedHealth’s strategic maneuvers in the Medicare Advantage sector.

Oppenheimer reduced its price target to $325 from $400, maintaining an Outperform rating, and pointed to UnitedHealth’s 2025 earnings guidance as potentially marking a low point before anticipated growth. Piper Sandler followed suit by lowering its price target to $317 from $353, highlighting the transparency in UnitedHealth’s earnings call regarding its business mix and pricing strategies. These recent developments reflect a range of perspectives on UnitedHealth’s financial outlook and strategic positioning.

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