Analyst Erin Wright from Morgan Stanley maintained a Buy rating on UnitedHealth (UNH – Research Report) and keeping the price target at $610.00.
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Erin Wright has given his Buy rating due to a combination of factors influencing UnitedHealth’s current market position and future prospects. Despite recent scrutiny from the Department of Justice regarding its billing practices and the antitrust investigation, these challenges are being addressed with updates to the risk adjustment model in the Medicare Advantage program. The model adjustments aim to mitigate past issues and offer a clearer path forward for the company.
Additionally, UnitedHealth’s current trading valuation appears attractive, as it is below its historical averages over the past decade. The company’s strategic positioning, involving significant integration between its insurance and healthcare provider operations, demonstrates potential for growth, particularly in the value-based care segment. Erin Wright perceives these elements as indicative of UnitedHealth’s ability to maintain and potentially enhance its market standing, justifying a Buy recommendation.
In another report released today, Bernstein also reiterated a Buy rating on the stock with a $697.00 price target.