Piper Sandler lowered the firm’s price target on UnitedHealth (UNH) to $396 from $417 and keeps an Overweight rating on the shares given in-line 2025 adjusted EPS and solid 2026 guidance. The firm recognizes that the 2027 Advance Notice suggests persistent funding headwinds in MA, but believes that UnitedHealth will take necessary action to preserve MA margin in the absence of a positive revision with the Rate Announcement in April. Piper remains very confident in CEO Stephen Hemsley’s ability to optimize margins at UHC; restore profitability within Optum Health’s VBC businesses; and align the company’s insurance and services segments to create the type of integrated financing and delivery model he envisioned as architect of Optum at its inception in 2011. Piper adds it would be a buyer on the stock selloff.
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