UnitedHealth downgraded to Hold at Argus after guidance cut

As previously reported, Argus downgraded UnitedHealth (UNH) to Hold from Buy after the company cut its 2025 guidance, citing a jump in medical costs in its group Medicare Advantage business and weaker results from its Optum Health business. Medical cost pressures at Group Medicare Advantage will likely continue through the first half of 2025 and the cut in 2025 guidance makes it “more difficult to see a path to profitable growth in managed-care,” the analyst tells investors. Based on the updated guidance, the firm is reducing its estimates for adjusted EPS to $26.25 from $29.70 for 2025 and to $31.00 from $33.30 for 2026.