UnitedHealth (UNH) delivered better-than-expected third-quarter results, reflecting progress on its turnaround strategy amid high medical costs and other challenges. Several analysts reaffirmed their Buy ratings on UNH stock following the Q3 print, with analysts at RBC Capital and Leerink raising their price targets to reflect optimism about the health insurer.
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RBC and Leerink Analysts Raise Price Targets for UNH Stock
RBC Capital analyst Ben Hendrix reiterated a Buy rating on UnitedHealth stock and raised his price target to $408 from $286 to reflect recent industry multiple expansion. The 4-star analyst noted management’s confidence about solid pricing and plan exits driving margin expansion next year. With expectations of margin improvement accelerating in 2027, Hendrix projects that UNH will deliver earnings per share (EPS) growth near the low end of the long-term annual growth target of 13% to 16%.
Likewise, Leerink Partners analyst Whit Mayo increased the price target for UNH stock to $410 from $402 and reaffirmed a Buy rating. The 4-star analyst noted that Q3 results reflect good execution against lowered targets, stable (yet elevated) trend, and forward commentary that “lays compelling groundwork to believe in a multi-year margin recovery thesis.”
Mayo continues to see upside case for $25 per share in 2027 EPS. While the analyst doesn’t see UNH stock as very compelling given the run-up and comparison against peer multiples, he thinks that shares can move up with better execution and numbers, more clarity on V28 hurdles (The new V28 rule has more specific billing codes, closing loopholes that could boost reimbursement), and improving or stable cost trends.
Truist Remains Bullish on UnitedHealth Stock
Meanwhile, Truist analyst David MacDonald reiterated a Buy rating on UnitedHealth stock with a price target of $410. The 5-star analyst remains bullish following UNH’s solid Q3 results, with the company reporting better-than-expected medical cost ratio (MCR) and adjusted EPS. MacDonald noted UNH’s upgraded FY25 guidance, with current FY26 consensus “capturing a likely stepping off point,” and double-digit growth expected in FY27. He highlighted that utilization trends are running broadly in line with expectations and pricing actions and product adjustments are expected to drive enhanced margins across business lines in 2026, except Medicaid, where margins are expected to trough.
Further, MacDonald noted that payer contracting adjustments are expected to offset half the 2026 V28 headwind. He expects attractive cash flows to further support ongoing recovery and more normalized capital deployment as 2026 progresses.
Is UNH a Good Stock to Buy?
Currently, Wall Street has a Moderate Buy consensus rating on UnitedHealth stock based on 17 Buys, three Holds, and two Sell recommendations. The average UNH stock price target of $385.09 indicates 7.6% upside potential.
