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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating on UnitedHealth Group (NYSE:UNH) with a price target of $377.00 ahead of the company’s second-quarter earnings report. According to InvestingPro data, the stock is currently trading below its Fair Value, with a P/E ratio of 11.64x and strong financial health metrics earning an overall "GREAT" rating.
The firm expects UnitedHealth to focus on "re-establishing confidence and reducing uncertainty" for investors during its earnings call on Tuesday, July 29. Bernstein SocGen believes UnitedHealth’s strong market position will enable a return to solid earnings growth as industry cycles in utilization and Medicare Advantage pricing reverse. The company has demonstrated consistent growth with revenue increasing by 8.06% over the last twelve months to $410.06 billion, while maintaining a 22% gross profit margin. InvestingPro subscribers can access 10+ additional ProTips and comprehensive analysis about UNH’s financial performance.
The research firm noted that the most critical questions for the upcoming earnings call relate not to second-quarter results but to changes in management processes, operating plans for Medicare Advantage and OptumHealth for 2025-2026, and potential strategy adjustments.
Bernstein SocGen projects UnitedHealth’s 2025 guidance to fall in the $20-21 earnings per share range, though it could be lower if the company implements extra reserving or one-time actions.
For 2026, the firm anticipates approximately 15% growth in earnings per share, likely expressed as a return to UnitedHealth’s typical 13-16% growth range.
In other recent news, UnitedHealth Group has adjusted its 2025 earnings outlook, forecasting adjusted earnings of at least $16.00 per share, down from a previously suspended outlook, with projected revenue between $445.5 billion and $448.0 billion. This revision is attributed to higher-than-expected medical costs and reductions in Medicare funding. The company is also cooperating with the U.S. Department of Justice on requests regarding its Medicare program participation, expressing confidence in its practices while committing to work with the authorities. Analyst firms have adjusted their evaluations of UnitedHealth, with Leerink Partners lowering its price target to $340 and Wolfe Research decreasing it to $330, both maintaining an Outperform rating. Wolfe Research noted pressures on UnitedHealth’s 2025 earnings outlook, citing industry challenges and potential investments. Additionally, UnitedHealth has announced leadership changes, appointing Mike Cotton as the new head of its Medicaid segment and expanding Bobby Hunter’s role to CEO of government programs. These developments reflect ongoing adjustments and strategic shifts within UnitedHealth Group.
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