Street Calls of the Week
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on UnitedHealth Group (NYSE:UNH) with a price target of $440.00. The healthcare giant, with a market capitalization of $333 billion, currently trades at a P/E ratio of 15.9, which InvestingPro analysis indicates is attractive relative to its near-term earnings growth potential.
The firm expects UnitedHealth to experience the largest year-over-year bonus increase as it recovers to its long-term 2-4% range, compared to 2-2.5% in 2025.
Cantor Fitzgerald estimates a $368 million bonus revenue increase from UnitedHealth’s previously announced 78% of members in 4-Star plans.
UnitedHealth led the 4.5-Star improvement, increasing membership to 41% in 2026 versus 12% in 2025, according to the research note.
This improvement outpaces competitors, with Humana showing an 11% improvement to 14% in 2026 versus 3% in 2025, while Elevance Health increased to 12% versus 10%, and Molina Healthcare to 5% versus 0%.
In other recent news, UnitedHealth Group is set to release its third-quarter earnings on October 28, with analysts projecting earnings per share of $2.81 and revenue of $113.14 billion. Ahead of this report, Bernstein SocGen Group increased its price target for UnitedHealth to $433, maintaining an Outperform rating. Similarly, KeyBanc raised its price target for the company to $400, citing strong performance in star ratings. UnitedHealthcare, a subsidiary of UnitedHealth Group, announced its 2026 Medicare Advantage plans, ensuring coverage for 94% of eligible beneficiaries despite funding cuts.
Meanwhile, CVS Health’s Medicare Advantage Star Ratings remained stable, with Mizuho reiterating an Outperform rating and setting a price target of $80. This stability contrasts with improvements seen in other companies’ star ratings. Additionally, Plus Therapeutics announced a national agreement with UnitedHealthcare for its CNSide® Cerebrospinal Fluid Tumor Cell Enumeration test, effective September 2025, which will cover over 51 million people in the U.S. These developments highlight significant movements in the healthcare sector, impacting both investors and beneficiaries.
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