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Investing.com - UnitedHealth Group (NYSE:UNH) stock rose after Bernstein SocGen Group reiterated an Outperform rating with a $379.00 price target. The healthcare giant, with a market capitalization of $315 billion, has shown strong momentum with a 13% return over the past week, according to InvestingPro data.
UnitedHealth reported that 78% of its Medicare Advantage members will be in 4+ Star plans for 2026, compared to 69% in 2025 and 77% in 2024. The company indicated this performance aligns with its historical results.
The healthcare giant confirmed it still expects fiscal year 2025 earnings per share of at least $16, maintaining the outlook established during its second-quarter earnings report on July 29. This guidance includes the August closing of the Amedisys acquisition.
Bernstein noted this represents a positive outcome for UnitedHealth, addressing two key investor concerns: potential guidance cuts under new CEO leadership and possible negative impacts from Medicare Advantage Star ratings on 2027 earnings recovery.
The firm suggested reduced near-term uncertainty may encourage investors to enter positions in UnitedHealth stock before third-quarter earnings, rather than waiting until after the October Stars ratings release.
In other recent news, UnitedHealth Group has reaffirmed its 2025 earnings outlook, reassuring investors by maintaining its previously disclosed earnings per share expectations. This announcement was made during a series of investor meetings and was part of an SEC filing. Additionally, the company released preliminary data indicating that 78% of its Medicare Advantage membership is expected to be in plans rated 4-star or higher for payment year 2027. This aligns with historical trends and management’s expectations, as noted in their recent 8-K filing.
Several investment firms have weighed in on UnitedHealth’s prospects. Morgan Stanley reiterated an Overweight rating with a $325 price target, expressing optimism about the company’s turnaround efforts driven by Medicare Advantage and Optum Health. Truist Securities raised its price target to $365 from $310, maintaining a Buy rating, following the preliminary star ratings disclosure. Barclays also maintained an Overweight rating with a $352 price target, citing the stable Medicare Advantage star ratings. Meanwhile, TD Cowen kept a Hold rating with a $275 price target, acknowledging the consistency in UnitedHealth’s historical performance in star ratings.
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