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Investing.com - Truist Securities has raised its price target on UnitedHealth Group (NYSE:UNH) to $365.00 from $310.00 while maintaining a Buy rating on the stock. The healthcare giant, currently valued at over $300 billion, trades at an attractive 14.2x earnings multiple, and according to InvestingPro analysis, appears slightly undervalued at current levels.
The price target increase follows UnitedHealth’s 8-K filing providing preliminary 2026 Star ratings information. According to the filing, the company estimates approximately 78% of its membership will be in 4+ Star plans for Payment Year 2027, consistent with management’s expectations and historical trends.
This performance represents an improvement compared to 2025, where Truist Securities estimates approximately 70% of members were in 4+ Star plans, and is closer to the 77% level achieved in 2024. Truist views this update favorably, especially considering the industry has experienced Star ratings volatility over the past few years.
UnitedHealth also reaffirmed its fiscal year 2025 adjusted earnings per share guidance of at least $16.00, inclusive of the recently completed Amedisys acquisition. The company noted the acquisition is expected to be modestly dilutive to adjusted EPS due to financing costs and integration-related investments.
Truist Securities indicated it raised its price target to reflect a higher assumed multiple on its 2027 EPS estimate, while official Star ratings from CMS are expected to be released in early October.
In other recent news, UnitedHealth Group has reaffirmed its earnings outlook for 2025, as disclosed during investor meetings. The company plans to maintain its adjusted earnings per share expectations, first announced in July 2025, which includes the impact of its acquisition of Amedisys. This acquisition is expected to be modestly dilutive due to associated financing costs and integration investments. Additionally, UnitedHealth Group announced that 78% of its Medicare Advantage membership is projected to be in plans rated 4-star or higher for 2026, consistent with prior years. Barclays has reiterated an Overweight rating for UnitedHealth, citing stable star ratings as a positive factor. Meanwhile, TD Cowen has maintained a Hold rating with a $275 price target, reflecting the company’s consistent performance in Medicare Advantage plans. The Centers for Medicare & Medicaid Services is still reviewing the preliminary star ratings data. These developments highlight UnitedHealth Group’s ongoing strategic efforts and financial projections.
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