Cantor cuts UnitedHealth target, says ‘this is likely the bottom’

Cantor Fitzgerald lowered the firm’s price target on UnitedHealth (UNH) to $440 from $600 and keeps an Overweight rating on the shares after the company announced a CEO change and suspended its 2025 outlook. The stock in afternoon trading is down 16%, or $59.59, to $318.97. “This is likely the bottom” for the shares and the selloff creates a buying opportunity “for long term returns,” the analyst tells investors in a research note. Cantor sees the diversification of UnitedHealth’s business model provides “downside protection in times such as this” and believes in the company’s ability to return to 13%-16% earnings growth. While there is near-term uncertainty in UnitedHealth’s Medicare Advantage book and “programmatic pressures” in Optum Health, these risks are modest in scale for the company, contends Cantor.