Analyst Justin Lake of Wolfe Research reiterated a Buy rating on UnitedHealth (UNH – Research Report), reducing the price target to $390.00.
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Justin Lake has given his Buy rating due to a combination of factors influencing UnitedHealth’s future prospects. One of the primary reasons is the potential recovery in the margins of the OptumCare physician capitation business. Improving these margins from the current estimate to a target of over 8% is seen as crucial for enhancing the company’s earnings per share and overall growth trajectory.
Additionally, Lake anticipates that UnitedHealth can achieve significant improvements in its Medicare Advantage margins, which would further bolster the company’s financial performance. The expectation of these margin recoveries, coupled with strategic benefit reductions and selective product exits, positions UnitedHealth for a favorable growth outlook. These factors collectively contribute to Lake’s confidence in the stock’s potential, justifying the Buy rating.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $360.00 price target.
Based on the recent corporate insider activity of 146 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UNH in relation to earlier this year.