BUZZ - Broker's View: As market optimism rises, UnitedHealth Group's recovery momentum is strengthening

October 14 - ** UnitedHealth Group UNH.N raised its 2026 earnings guidance on Tuesday (link) and stated that Wall Street is underestimating its prospects for 2027, citing strict control over medical costs in its insurance business and improving margins in clinical care.

** The median target price given by 29 brokers covering the stock is $480 — according to LSEG compiled data.

Key metrics continue to improve

** Leerink Partners (rating “outperform”, target price: $472) noted that organizational restructuring is starting to take effect, profit margins are improving, and UNH has strong momentum in key health insurance plans. Although commercial insurance remains under pressure, trends in Medicaid are getting better.

** Morgan Stanley (“overweight”, target price: $529) pointed out that UNH’s better-than-expected results and upgraded guidance reinforce its recovery trajectory, as growth in Medicare Advantage and Optum Health businesses is set to boost earnings expectations for 2026 and 2027.

** Jefferies (“buy”, target price: $453) said fiscal year 2027 should benefit from stronger fundamentals, the alleviation of headwinds from asset divestitures, and removal of one-time investment costs. This will provide an early boost and could help margins exceed the company’s earlier targets.

** JPMorgan (“overweight”) stated: “Given UNH’s diversified business and scale advantage, we continue to believe the company can maintain growth in the +13% to +16% long-term range in 2027 and beyond.”

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