June 20 - UnitedHealth Group (UNH, Financial) received a price target hike from JPMorgan's Lisa Gill, who now sees the stock reaching $418, up from $405. The revised target suggests a potential upside of nearly 36%, according to a Thursday note.
Shares of the health insurance provider have fallen about 39% so far this year, pressured by rising costs in its Medicare Advantage business and weaker-than-expected first-quarter earnings. A recent CEO change also added to investor concerns.
Gill adjusted her forecasts after a meeting with UnitedHealth's leadership. While acknowledging the pressure from higher physician visits and outpatient claims, she expects the company to refocus on profitability rather than aggressive membership expansion.
Looking ahead, Gill anticipates slower Medicare Advantage enrollment growth through 2026. She said UnitedHealth may scale back its offerings and exit underperforming plans over the next year.
Still, the analyst believes margins could come in at the low end of the company's 3% to 5% goal for the Medicare segment. If that plays out, earnings may beat current expectations.
Gill maintained an “Overweight” rating, suggesting she remains optimistic about a potential rebound.
Is UNH Stock a Buy?
Based on the one year price targets offered by 24 analysts, the average target price for UnitedHealth Group Inc is $380.92 with a high estimate of $677.00 and a low estimate of $270.00. The average target implies a upside of +24.00% from the current price of $307.20.
