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Investing.com - Jefferies raised its price target on UnitedHealth Group (NYSE:UNH) to $409.00 from $317.00 while maintaining a Buy rating on the stock. The healthcare giant, currently trading at a P/E of 15.37x and commanding a market cap of $323.03B, has demonstrated strong financial health according to InvestingPro analysis.
The firm cited potential margin improvements in UnitedHealth’s Medicare Advantage business for 2026, projecting approximately 100 basis points of medical loss ratio improvement that year.
Jefferies noted that assertive Group repricing efforts would likely drive upside, while changes to commissions and distribution would reduce volatility in the Medicare Advantage segment.
For UnitedHealth’s Optum Health business, Jefferies identified a self-improvement opportunity in the roughly 25% of value-based care lives with "affiliated" doctors.
The firm projects Optum Health margins to reach 5.7% by 2027, which would be 210 basis points above current Street estimates, suggesting significant potential upside to consensus earnings forecasts despite the stock’s seemingly full valuation at approximately 17.4 times consensus 2027 earnings.
In other recent news, UnitedHealth Group is gearing up for its third-quarter earnings report scheduled for October 28, with analysts projecting earnings per share of $2.81 on revenue of $113.14 billion. Bernstein SocGen Group has raised its price target for UnitedHealth to $433, maintaining an Outperform rating ahead of the earnings release. KeyBanc also increased its price target to $400, citing strong performance in star ratings, while keeping an Overweight rating. Additionally, Cantor Fitzgerald reiterated its Overweight rating with a price target of $440, anticipating a significant year-over-year bonus increase for UnitedHealth. Meanwhile, TD Cowen adjusted its price target to $335 from $275, maintaining a Hold rating and noting a potentially favorable outlook for Medicare Advantage margins in 2027. In related industry news, CVS Health received an Outperform rating from Mizuho, with a price target of $80, following stable Medicare Advantage Star Ratings. The ratings stability for CVS Health was noted as other companies in the sector showed improvements in their star ratings. These developments highlight the ongoing analysis and projections by various firms regarding UnitedHealth Group and its position in the healthcare sector.
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