UBS top analyst, A.J. Rice, lifted the price target on UnitedHealth (UNH) stock by over 14% following the health insurer’s reaffirmation of its 2025 earnings outlook. Rice maintained his “Buy” rating on the stock and raised the price target from $330 to $378, implying 9% upside potential from current levels. Wall Street was also impressed that UnitedHealth was able to maintain its Medicare Advantage Star rating for 2027, despite ongoing sector challenges.
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Rice is a five-star analyst on TipRanks, ranking #791 out of 10,026 analysts tracked. He boasts a 61% success rate and an average return per rating of 8.30%.
Here’s Why Rice Is Bullish on UNH Stock
UNH reaffirmed its previously forecasted fiscal 2025 adjusted earnings per share (EPS) of at least $16.00 and revenue between $445.5 billion and $448 billion. For reference, analysts expect UNH to report adjusted EPS of $16.24 and revenue of $448.2 billion.
Furthermore, the company revealed that preliminary data show nearly 78% of its Medicare Advantage members will be enrolled in plans rated four stars or higher for 2026. This positions UNH to receive higher government bonus payments as well as restores attractiveness of its plans to seniors, ensuring member retention and growth.
Rice believes that these positive developments are likely to strengthen investor confidence in the stock and support the company’s efforts to improve margins in its Medicare Advantage business.
He also acknowledged that UnitedHealth continues to face headwinds tied to the v28 changes coming in 2026, which involve updates to Medicare Advantage risk-adjustment calculations that could reduce reimbursement rates and pressure margins. However, management expects earnings to grow next year, even though they have not yet provided specific EPS guidance for 2026.
Finally, Rice stated that the biggest unknown for UNH currently is the exact outlook for 2026. Nonetheless, he believes that expectations for 2026 have been set conservatively so far.
Is UNH Stock a Buy, Hold, or Sell?
On TipRanks, UNH stock has a Strong Buy consensus rating based on 16 Buys, two Holds, and one Sell rating. The average UnitedHealth price target of $324.35 implies 6.5% downside potential from current levels. Year-to-date, UNH stock has lost nearly 31%.
