UnitedHealth price target lowered to $400 from $450 at KeyBanc

KeyBanc lowered the firm’s price target on UnitedHealth (UNH) to $400 from $450 and keeps an Overweight rating on the shares. The firm believes the stock has likely overshot to the downside, with current valuation potentially implying an EPS power that embeds less than 0% margins for the company’s MA business. KeyBanc thinks this dislocation is unlikely to sustain over the long term. Additionally, it maintains that the negative issues impacting 2025 are fixable starting in 2026. While patience will be required and uncertainty is elevated, the firm believes the 12-month+ setup from here is attractive, arguing that UnitedHealth is the bellwether MCO, trading at a historically discounted valuation on depressed margins.