UnitedHealth price target raised to $440 from $433 at Bernstein

Bernstein analyst Lance Wilkes raised the firm’s price target on UnitedHealth (UNH) to $440 from $433 and keeps an Outperform rating on the shares. The firm has updated its UnitedHealth EPS model post-Q3 earnings. Bernstein expects a sector-wide turnaround as MA and Medicaid recover from trough margins following MA rate shocks, withdrawal of competition, and redeterminations. The firm sees evidence that pricing discipline is being restored in MA and Optum Health, which will shock growth in the short-term but restore margin more swiftly. Bernstein sees UnitedHealth’s valuation as attractive given its expectation for outsized EPS growth recovery over the next 4 years.