Key Highlights:
- UnitedHealth Group and Memorial Sloan Kettering Cancer Center's contract impasse affects thousands of cancer patients.
- Analysts predict a 21.90% upside for UnitedHealth Group's stock.
- GuruFocus projects a significant 125.46% upside based on their GF Value estimate.
UnitedHealth Group Inc. (NYSE: UNH) is currently navigating a challenging contract negotiation with Memorial Sloan Kettering Cancer Center, creating uncertainties for numerous cancer patients. This impasse may lead to increased costs for these patients or require them to seek alternative healthcare providers. While MSK's hospital services continue to remain in-network for some, its outpatient centers have unfortunately moved out-of-network for UnitedHealthcare's commercial plan members. Let's dive deeper into what this means for investors.
Wall Street Analysts' Insights
According to the one-year price targets provided by 24 analysts, UnitedHealth Group Inc (UNH, Financial) is expected to reach an average target price of $380.30. This estimate ranges from a high of $677.00 to a low of $270.00, with the average target suggesting a potential upside of 21.90% from its current price of $311.97. Investors can explore more detailed estimates on the UnitedHealth Group Inc (UNH) Forecast page.
The consensus recommendation from 28 brokerage firms places UnitedHealth Group Inc (UNH, Financial) at an average brokerage recommendation of 2.2, which translates to an "Outperform" status. The brokerage rating scale ranges from 1, indicating a Strong Buy, to 5, suggesting a Sell.
Evaluating GF Value Estimates
Per GuruFocus, the estimated GF Value for UnitedHealth Group Inc (UNH, Financial) stands at $703.36 over the next year. This valuation suggests an impressive upside of 125.46% from the current price of $311.97. The GF Value metric is GuruFocus' estimation of a stock's fair trading value, calculated considering historical trading multiples, historical business growth, and future business performance forecasts. Investors can find more comprehensive data on the UnitedHealth Group Inc (UNH) Summary page.
Investors should weigh these insights carefully, considering both the risks inherent in the ongoing contract negotiations and the optimistic forecasts provided by analysts and GuruFocus. Staying informed and exploring detailed data can help in making judicious investment decisions.
