Several Wall Street analysts grew more bullish on UnitedHealth Group (UNH), the health insurance giant, ahead of its third-quarter earnings later this month. Analysts at KeyBanc and Bernstein raised their price targets, pointing to improving fundamentals, stronger Star Ratings, and an early recovery in margins across the healthcare sector.
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Wall Street expects the company to report EPS of $2.81 on revenues of $113.1 billion. Notably, the stock has lagged in recent quarters due to margin compression, high medical costs in the Medicare Advantage (MA) business, and the Department of Justice (DOJ) probe, among others. However, analysts believe a clearer earnings outlook and signs of recovery could attract long-term investors.
Bernstein Expects Multi-Year Growth Recovery
Bernstein analyst Lance Wilkes boosted his price target on UnitedHealth to $433 from $379, reiterating an Outperform rating. He expects third-quarter EPS of about $2.84, with results likely at or slightly above estimates. Wilkes said investors will watch for updates on 2026 guidance, as UNH had earlier signaled mid- to high-single-digit EPS growth and may lift that outlook on the Q3 call or in December.
The analyst expects a sector rebound as Medicare Advantage and Medicaid margins begin to recover after last year’s rate pressure. He added that UNH’s Optum Health business should see faster margin improvement as pricing stabilizes.
Overall, he views UNH’s valuation as appealing and expects strong earnings growth over the next four years as margins continue to recover.
KeyBanc Highlights Earnings Power and Recovery Potential
KeyBanc analyst Matthew Gillmor also raised his price target on UnitedHealth to $400 from $350 and maintained an Overweight rating, saying investor sentiment is finally improving after a weak start to the year.
Gillmor noted that UNH shares have rallied about 50% since early August, helped by Warren Buffett’s Berkshire Hathaway (BRK.B) new stake in the company and stronger-than-expected 2026 Star Ratings, which came in at 78% versus management’s prior view above 60%. He believes those ratings could add roughly 5% to EPS in 2027, creating a tailwind that was not reflected in earlier forecasts.
The analyst believes improved execution over the next 12–18 months could support further upside.
Is UNH a Good Buy Right Now?
Overall, Wall Street analysts also remain bullish on UNH stock. According to TipRanks’ consensus, UNH stock has a Strong Buy consensus rating based on 17 Buys, two Holds, and one Sell assigned in the last three months. At $344.21, the average UnitedHealth stock price target implies a 6.95% downside potential.
