UnitedHealth price target lowered to $503 from $565 at Jefferies

Jefferies analyst David Windley lowered the firm’s price target on UnitedHealth to $503 from $565 and keeps a Hold rating on the shares. The firm concludes the current Optum Care network has capacity for about 2.4M more Medicare Advantage full-risk lives, as it estimates 5.9M effective capacity minus 3.55M MA lives already onboarded, which it describes as “likely a low number to investors.” The firm reduced its capitated life growth assumptions to 700,000 and 600,000 in 2024 and 2025, respectively, and reduced its multiple down to match the 10 year relative average, the analyst tells investors.