UnitedHealth (UNH), one of the prominent players in the health insurance space, is scheduled to announce its second-quarter earnings on July 29. Ahead of the Q2 results, several analysts have reaffirmed their Buy rating on UNH stock but lowered their price targets to reflect company-specific and industry-related headwinds. On Tuesday, Deutsche Bank lowered the price target for UnitedHealth stock to $328 from $362 while reiterating a Buy rating.
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Deutsche Bank Cuts Price Target Ahead of UNH’s Q2 Earnings
Deutsche Bank analyst George Hill lowered his price target for UnitedHealth stock, saying that investor sentiment “has deteriorated significantly” due to a series of unfavorable news related to the company and challenges across the sector. The top-rated analyst also lowered his estimates, noting that the company’s healthcare services business, Optum Health, remains the biggest concern.
UNH stock has plunged 44% year-to-date due to the abrupt CEO exit, the withdrawal of full-year guidance resulting from rising costs in the Medicare Advantage segment, and the Department of Justice’s probe into the company’s billing practices.
Recently, Leerink Partners analyst Whit Mayo also lowered the price target for UNH stock to $340 from $355 and reiterated a Buy rating. The analyst noted that buy-side expectations have been moderately fading over the past month. Mayo stated that the general expectation is that the company will reinstate the 2025 EPS guidance in the range of $18 to $19, which he believes would ease the concerns about the reduction in overall margins. Overall, Mayo is “cautiously optimistic on the positive thesis from here,” given the challenging backdrop.
Wall Street expects UnitedHealth to report earnings per share (EPS) of $4.59 for Q2 2025, reflecting a more than 33% year-over-year decline.
What Is the Price Target for UNH Stock?
Overall, Wall Street is cautiously optimistic on UnitedHealth stock based on 18 Buys, five Holds, and one Sell recommendation. The average UNH stock price target of $356.36 indicates a 25% upside potential from current levels.
