Morgan Stanley analyst Erin Wright has maintained their bullish stance on UNH stock, giving a Buy rating yesterday.
Erin Wright’s rating is based on a combination of factors that suggest potential recovery for UnitedHealth despite recent setbacks. The company faced challenges with its 2025 earnings per share (EPS) guidance, which was reduced by 12% due to higher than expected utilization in Group Medicare Advantage and an unfavorable patient mix at Optum Health. These issues, while disappointing, are seen as addressable and specific to the company, indicating that they can be managed over time.
Wright believes that although the current situation has affected UnitedHealth’s defensive position in the market, the company has the potential to recover as it moves towards 2026. The expectation is that UnitedHealth will achieve at least the lower end of its long-term EPS growth targets, suggesting that the current valuation may be conservative. This outlook supports a Buy rating, as the company is expected to overcome its current challenges and improve its financial performance in the future.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $592.00 price target.