UnitedHealth’s Strategic Initiatives and Pricing Adjustments Drive Positive Outlook and Buy Rating

Leerink Partners analyst Whit Mayo has maintained their bullish stance on UNH stock, giving a Buy rating yesterday.

Whit Mayo’s rating is based on UnitedHealth’s proactive approach to addressing cost trends and pricing strategies. The company acknowledged previous underestimations in pricing, particularly in Medicare Advantage, and has taken steps to incorporate new expectations into their bids. Additionally, UnitedHealth is enhancing transparency around Optum Health and strengthening audit processes to ensure compliance and investor confidence.
Furthermore, UnitedHealth is realigning its team and internal processes to ensure effective leadership within UHC and Optum. The company plans to issue new guidance for 2025 and provide preliminary views on 2026, reflecting updated trend factors. These strategic initiatives and the focus on improving margins contribute to the positive outlook and the Buy rating given by Whit Mayo.

In another report released yesterday, Bernstein also reiterated a Buy rating on the stock with a $377.00 price target.

Based on the recent corporate insider activity of 147 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.