UnitedHealth (UNH) shares gained about 5% on Wednesday after Wolfe Research analyst Justin Lake raised his price target on the healthcare giant to $375 from $330, while maintaining a Buy rating. The top analyst noted that the “key to stock price/multiple likely being improvement in margins and growth at Optum.”
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The upgrade reflects confidence in UnitedHealth’s ability to restore margins in its insurance arm, UnitedHealthcare (UHC), and drive growth through its diversified healthcare services unit, Optum.
Analyst Sees Strong Earnings Growth Potential
According to Lake, UnitedHealth’s long-term earnings potential remains strong. By 2028/2029, he expects earnings to reach about $30 per share, aided by updated long-term targets for Optum Health, Medicare Advantage, and Medicaid.
Even without hitting Optum Health’s full targets, the analyst suggests earnings could approach $27 per share in 2028, driven by margin recovery at UHC.
Roundhill Launches New UNH‑Focused ETF
Adding to the momentum, Roundhill Investments has launched the UNH WeeklyPay ETF (UNHW), the first healthcare‑focused fund in its single‑stock WeeklyPay suite.
The ETF delivers weekly distributions and direct exposure to UnitedHealth stock’s performance. This broadens investor access and strengthens the company’s visibility in the healthcare sector.
By offering enhanced exposure and weekly income potential, the fund could attract both retail and institutional investors seeking consistent returns tied to UNH’s long‑term growth story.
Upgrade Offers Relief amid Year‑to‑Date Stock Slide
The rally comes as a welcome relief for UnitedHealth stock, which has fallen 32% year‑to‑date in 2025 amid investor concerns over margin pressures, regulatory scrutiny, and rising medical costs.
The analyst’s upgrade reflects renewed optimism that UNH can navigate near-term challenges with a focus on margin recovery in its insurance arm and expansion through Optum.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, four Holds, and two Sells assigned in the last three months. At $312.65, the average UnitedHealth stock price target implies a 2.17% upside potential.
