UnitedHealth (UNH) has received a price target upgrade. TD Cowen analyst Ryan Langston raised his target to $335 from $275, while maintaining a Hold rating. The analyst cited optimism about the healthcare conglomerate’s long-term margin recovery, particularly in its Medicare Advantage (MA) business.
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2027 MA Outlook Signals Upside
Langston sees the 2027 MA Advance Notice as a key positive signal for UNH’s future margins. He expects better-than-anticipated rate increases in 2027, thanks to higher cost trends that might be reflected in the Centers for Medicare & Medicaid Services’ (CMS) pricing.
The analyst believes UnitedHealth can recover its full target margin in MA over the next couple of years.
2026 Is Still Uncertain
At the same time, Langston remains cautious about 2026 due to potential impacts from version 28 (v28) changes, which affect both UnitedHealthcare and Optum Health. For reference, v28 is a risk adjustment system used to predict healthcare costs.
The analyst noted that UNH has significantly cut benefits for 2026, which could help margins but may also impact member satisfaction. Further, he sees uncertainty about whether the new CEO will provide 2026 guidance at the upcoming third-quarter earnings release.
Valuation and EPS Outlook
The new price target of $335 is based on 19.5x TD Cowen’s 2026 adjusted EPS estimate, which Langston said reflects a three-year median discount to the S&P 500 Index (SPX).
While UnitedHealth currently trades at a forward P/E of 21x, above its historical average of 17–18x, the analyst sees potential for 2026 EPS to reach $20, compared to the current consensus of $17.56.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, two Holds, and two Sells assigned in the last three months. At $359.09, the average UnitedHealth stock price target implies a 1.13% upside potential.
