UnitedHealth downgraded to Neutral at BofA amid MA uncertainty

As previously reported, BofA analyst Joanna Gajuk downgraded UnitedHealth (UNH) to Neutral from Buy with a price target of $350, down from $560, after the company suspended 2025 guidance after lowering 12% with Q1 a month ago due to the Medicare Advantage trend not only getting significantly worse than had already been called out on the Q1 call, but now also spreading to more complex patients like duals. UnitedHealth still expects to return to EPS growth in 2026 and to return MA to 3%-5% margins, but that may come with flat or negative MA member growth in order to restore margin as they prepare for their bid strategy in the coming weeks, the analyst noted. BofA lowered estimates and multiple as it lowers the premium versus peers given the uncertainty and lack of catalysts in the near term, the analyst noted.