UnitedHealth price target lowered to $650 from $675 at KeyBanc

KeyBanc lowered the firm’s price target on UnitedHealth to $650 from $675 and keeps an Overweight rating on the shares. The firm notes Q3 results were disappointing, primarily highlighted by higher medical costs and an initial EPS outlook for 2025 that was below expectations. KeyBanc was somewhat cautions on MA MCOs into Q3 earnings, but had been optimistic UnitedHealth could accelerate EPS growth in 2025 back to long-term targets. However, ongoing headwinds, along with UnitedHealth’s decision to maintain organic investments, likely push out this thesis until 2026.