"Goldman's thesis hinges on the Medicare Advantage underwriting cycle bottoming. With MA representing 40% of UnitedHealth's business, any inflection in pricing discipline and cost trends flows disproportionately to earnings."
"UnitedHealth's medical care ratio improved 90 basis points year over year (YoY) to 84%, and adjusted EPS came in at $7.23 versus the $6.61 consensus. UnitedHealth CFO Wayne DeVeydt attributed the improvement to pricing discipline, strong medical cost management, and favorable reserve development."
"Bank of America also carries a Buy rating on UNH stock with a $435 target after its earlier price target raise tied to Medicare Advantage rate finalization, adding a second institutional voice to the bull case."
Goldman Sachs has added UnitedHealth Group to its U.S. Conviction List, maintaining a Buy rating and setting a price target of $435. The firm believes UnitedHealth is nearing the bottom of its Medicare Advantage underwriting cycle, which constitutes 40% of its business. Following a significant 37% increase in stock price in April, the firm sees potential for further gains. The Q1 2026 earnings report showed improvements in the medical care ratio and adjusted EPS, supporting the bullish outlook on the stock.
Read at 24/7 Wall St.
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