UnitedHealth initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of UnitedHealth (UNH) with a Buy rating and $406 price target The managed care industry faces its most significant underwriting downturn in over 15 years, the analyst tells investors in a research note. Goldman recommends increased exposure to Medicare Advantage as it sees a margin recovery phase beginning in 2026. However, the firm does not see the Medicare Advantage recovery playing out uniformly across the group in 2026. The analyst also sees a longer path to cyclical recovery in Medicaid and the healthcare exchange.