UnitedHealth price target raised to $675 from $660 at BofA

BofA raised the firm’s price target on UnitedHealth (UNH) to $675 from $660 and keeps a Buy rating on the shares. MCOs were pressured in 2023 from sector rotation, heightened regulatory scrutiny, trend concerns, and deal uncertainty, but broadly the firm remains bullish on managed care and sees 2024 being about the group resetting expectations, getting back to consistent beats and raises and working through overhangs. The firm notes it views Humana (HUM), on which it maintains a Buy rating and $640 price target, as “the most dislocated name in our coverage, with asymmetric upside potential.”