UnitedHealth, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Erin Wright from Morgan Stanley maintained a Buy rating on the stock and has a $395.00 price target.
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Erin Wright has given his Buy rating due to a combination of factors that highlight UnitedHealth’s potential for recovery and growth. The company’s third-quarter earnings report is seen as a crucial point in its recovery journey, with improvements in Stars ratings and a strategic restructuring at Optum Health being key elements. Wright notes that the management’s focus on disciplined execution and credible commentary around Medicare Advantage margin recovery are pivotal to restoring investor confidence.
Additionally, UnitedHealth’s management has expressed a strong commitment to returning to a pattern of consistent earnings beats and raises, which historically characterized the company. The anticipated margin turnaround in Medicare Advantage, supported by strategic bids and benefit redesigns, is expected to maintain pre-tax margin targets for the coming years. This, coupled with significant improvements in Stars ratings and a margin-first strategy, underpins Wright’s optimistic outlook for UnitedHealth’s stock.
In another report released on October 16, Bernstein also maintained a Buy rating on the stock with a $433.00 price target.