Bank of America Securities analyst Joanna Gajuk maintained a Buy rating on UnitedHealth (UNH – Research Report) today and set a price target of $675.00.
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Joanna Gajuk has given her Buy rating due to a combination of factors affecting UnitedHealth’s long-term growth prospects. Despite short-term challenges, such as pressures on Medicare Advantage utilization and reimbursement, UnitedHealth is expected to maintain a robust growth trajectory, with an estimated 13-16% earnings per share growth over the long term. The company’s strong market position and unique value proposition, trading at a discount compared to its historical average, also contribute to this positive outlook.
Medicare Advantage and Medicaid remain critical drivers of UnitedHealth’s revenue growth, with significant contributions expected from these segments in 2025. The potential for earnings growth is further supported by the possibility of returning to previous medical loss ratio levels, which could result in a 40% increase in earnings. Additionally, UnitedHealth’s vertical integration strategy aids in stabilizing margins amidst industry-wide pressures, providing a buffer against challenges faced by its peers.
In another report released on February 5, Bernstein also maintained a Buy rating on the stock with a $697.00 price target.
Based on the recent corporate insider activity of 149 insiders, corporate insider sentiment is neutral on the stock.