UnitedHealth Group (UNH) surged more than 7% today after reporting “beat-and-raise” Q1 results. The company’s standout metric was a significantly improved Medical Care Ratio (MCR) of 83.9%, signaling that the high medical costs that impacted the sector in 2025 are finally stabilizing. Evercore ISI analyst Elizabeth Anderson, CFA, said the results strengthen the health care company’s long‑term turnaround story. Anderson raised her price target on UNH stock to $400 from $350, while reiterating a Buy rating.
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Analyst Points to Early Turnaround Progress
The analyst said the latest quarter “supports our turnaround thesis,” noting that UnitedHealth is still early in a multi-year recovery but is showing the right signs of stabilization.
She noted that 2026 will be a transition year, given the scale and complexity of the business, but argued that management has set expectations conservatively enough to navigate most scenarios. The analyst believes that the real improvement should become more visible in 2027 and 2028, particularly within Optum, where operational progress could drive upside to both earnings estimates and valuation.
Anderson said one of the most encouraging signs is UnitedHealth’s disciplined Medicare Advantage (MA) pricing for 2026. She thinks the company could beat its current 2–2.5% guidance, which would put it on a stronger path than peers still dealing with MA uncertainty. She added that clearer pricing visibility is an important step in rebuilding investor confidence.
Following today’s results, the analyst made modest upward adjustments to her estimates and reaffirmed her long‑term bullish stance. Anderson’s new $400 price target is based on roughly 19x 2027 EPS, and she noted that EPS could be 5-10% higher in a bull case if the turnaround continues to strengthen.
Is UNH Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UNH stock based on 18 Buys and five Holds assigned in the past three months. Further, the average UnitedHealth price target of $367.81 per share implies 6.30% upside potential.
