Morgan Stanley analyst Erin Wright anticipates UnitedHealth Group (UNH) could provide “conservative” earnings guidance for 2025, potentially falling short of consensus estimates. Also, the five-star analyst reduced the price target for UNH stock to $342 from $374, while maintaining a Buy rating.
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In an earnings preview note on Monday, she suggested that UnitedHealth’s new leaders will likely set low expectations for 2025 and 2026.
This is because the company is still dealing with problems at its health services unit, Optum, and UNH may need to spend more money to fix those issues. However, the analyst said there is hope that profits from Medicare Advantage could improve in 2026.
2025 Earnings Expectations
It must be mentioned that UnitedHealth had previously lowered its full-year earnings outlook in April between $26 and $26.5 per share before withdrawing it entirely in May, due to growing concerns over high medical costs.
Wright now believes that the company might reinstate its guidance, but set it lower than her forecast of $20.94 per share for 2025. This stands in contrast to Wall Street’s current expectation of a full-year EPS of $21.56.
UnitedHealth is scheduled to report its second-quarter earnings on July 29.
UNH Faces Criticism Over Legal Threats
In other news, UnitedHealth is under fire for using legal threats and lawsuits to push back against critics, The New York Times reported. The company has sent warning letters to filmmakers, doctors, journalists, and even investors, accusing them of defamation and pressuring platforms to remove content.
The company said it is just protecting itself from false claims. But critics argue that UNH is trying to shut down real concerns, especially about its insurance claim denials and rising medical costs.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, seven Holds, and one Sell assigned in the last three months. At $358.59, the average UnitedHealth stock price target implies a 19.42% upside potential.
