Morgan Stanley has turned increasingly bullish on UnitedHealth (UNH) heading into the health care company’s first‑quarter earnings report. Five-star analyst Erin Wright reiterated a Buy rating and a $375 price target. Despite lingering caution across the managed‑care sector, Wright said sentiment is finally starting to improve and UNH is now her Top Pick.
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It is worth noting that Wright ranks 343 out of more than 12,193 analysts tracked by TipRanks. She has an overall success rate of 64%, with an average return per rating of 14.3% over a one-year timeframe.
Here’s Why The Analyst Is Bullish
Wright noted that investor fatigue around Medicare Advantage and medical‑cost uncertainty has weighed on the stock, but she sees several catalysts beginning to ease those concerns.
The biggest shift came after the final Medicare Advantage rate notice, which provided clearer visibility into 2026 reimbursement and reinforced confidence in UNH’s ability to continue improving MA margins. Wright also points to growing conviction in the Optum Health turnaround, an area investors have been watching closely after a challenging period.
The analyst also believes the company can benefit from AI‑driven efficiencies. While still early, Wright believes UnitedHealth is beginning to show signs that technology investments could meaningfully improve operations over time.
UNH to Report Q1 Results on April 21
UNH is set to report earnings on Tuesday, April 21. Regarding the upcoming Q1 print, Wright expects the company to report a relatively in‑line quarter.
Overall, Wall Street analysts expect UNH to post revenue of $109.52 billion in Q1, down slightly from $109.58 billion in the year-ago quarter. Further, the company is expected to report earnings of $6.60 per share, compared with earnings of $7.20 in the prior-year quarter.
Investors will likely watch for updates on Medicare Advantage margins, medical cost trends, and early signs of improvement at Optum Health, along with any commentary on AI-driven efficiencies and the management’s outlook for the rest of 2026.
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 $366.24 per share implies 15.75% upside potential.
