UnitedHealth (UNH) stock was hit hard yesterday after the sudden news of Andrew Witty stepping down as CEO and the immediate appointment of Stephen Hemsley to the role, along with the suspension of the company’s 2025 financial outlook. UNH stock was down 18%. Despite the company’s troubles, Wall Street analysts remain bullish about the stock.
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David S. Macdonald from Truist Financial (TFC) remains encouraged by the company’s aim to improve Medicare Advantage margins. Also, the analyst believes UNH’s balance sheet strength and cash flow provide a cushion, with its strategic approach aiding long-term growth.
Also, Piper Sandler analyst Jessica Tassan rated UNH a Buy with a $552 price target. Tassan views the return of Stephen Hemsley positively, stating, “We believe Mr. Hemsley is the right person to turnaround UNH.” Tassan believes Hemsley can identify the company’s potential to control cost trends, improve clinical outcomes, and optimize the healthcare experience.
Cantor Fitzgerald Sees Buying Opportunity
At the same time, a Top-rated analyst from Cantor Fitzgerald, Sarah James, lowered her price target on UHN stock to $440 from $600 but kept a Buy rating. She believes the significant stock drop “is likely the bottom” and presents a “buying opportunity for long-term returns.”
The analyst sees UnitedHealth’s diversified business as a safety net and expects 13%-16% earnings growth ahead. While noting near-term uncertainties in Medicare Advantage and Optum Health, James views these risks are small for the company.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Strong Buy consensus rating based on 22 Buys and three Holds assigned in the last three months. At $546.09, the average UnitedHealth stock price target implies a 75.38% upside potential.
