Ryan Langston, an analyst from TD Cowen, maintained the Hold rating on UnitedHealth. The associated price target was raised to $335.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ryan Langston’s rating is based on a combination of factors that suggest a cautious approach towards UnitedHealth’s stock. While there is potential for improved margins in the Medicare Advantage (MA) sector by 2027, driven by favorable advance notices, Langston remains cautious about the near-term outlook due to ongoing impacts from the v28. This cautious stance is reflected in the decision to maintain a Hold rating, even as the price target is raised to $335, which is a discount compared to the broader market index.
Langston notes that while the MA outlook is improving, with potential for margin recovery over the next few years, there are still uncertainties that warrant a conservative approach. The 2025 cost trends are higher than CMS projections, which could influence future rates. Additionally, while the 2026 MA Final Notice suggests some softening in language regarding risk model revisions, the timeline for implementation remains aggressive. These factors contribute to a balanced view, supporting the Hold rating.
In another report released on October 8, Bank of America Securities also maintained a Hold rating on the stock with a $390.00 price target.
Based on the recent corporate insider activity of 136 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UNH in relation to earlier this year.