UnitedHealth stock rating reiterated at Buy by UBS with $330 target

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. The stock, currently trading near its 52-week low of $234.60, appears undervalued according to InvestingPro Fair Value metrics.

UnitedHealth management emphasized it is taking a "return to basics approach" after conducting a comprehensive review of all business aspects, according to UBS analyst AJ Rice. The company indicated it is intentionally slowing near-term growth to establish firmer operational foundations before resuming expansion. Despite recent challenges, UnitedHealth maintains strong fundamentals with a 9.7% revenue growth and healthy 20.8% gross margins.

Management expects its benefits business to recover most quickly among its divisions. OptumHealth should see partial improvements from United Healthcare’s recovery, though some initiatives will require more time to show results.

The company acknowledged that OptumInsight needs better management and additional investments, despite introducing new products that will take time to gain traction. Meanwhile, OptumRx continues to perform well, according to management’s assessment.

At the corporate level, UnitedHealth plans to adopt a more proactive approach to public communications and brand reputation management, while also increasing investments in artificial intelligence technologies. The company maintains a strong financial health score of "Good" according to InvestingPro metrics, with sufficient cash flows to cover its obligations.

In other recent news, UnitedHealth Group has been at the center of several significant developments. UBS has reiterated its Buy rating with a $330.00 price target, highlighting the company’s "return to basics approach" in reviewing its business operations. Meanwhile, Bernstein SocGen Group lowered its price target from $377.00 to $337.00, maintaining an Outperform rating but citing a "lower earnings starting point" for 2025. Additionally, UnitedHealth Group announced a leadership change with Wayne S. DeVeydt appointed as the new Chief Financial Officer, effective September 2, 2025. DeVeydt brings extensive experience from previous roles at Bain Capital, Surgery Partners (NASDAQ:SGRY), and Anthem. In contrast, Baird downgraded UnitedHealth to Underperform due to concerns over OptumHealth, reflected in the company’s second-quarter 2025 earnings report. These recent developments underscore a period of strategic reassessment and leadership transition at UnitedHealth Group.

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