Baird Downgrades UnitedHealth Group (UNH) to Neutral from Outperform, Slashes PT to $312

UnitedHealth Group Incorporated (NYSE:UNH) is one of the 11 Best Drug Stocks to Buy According to Hedge Funds. On June 11, Baird downgraded UnitedHealth Group Incorporated (NYSE:UNH) to Neutral from Outperform, bringing the price target to $312 from $356. The analyst told investors that dealing with the current Medicare Advantage risk-adjustment model, v28, “appears much more difficult than we previously expected.”

The analyst further said that the firm’s due diligence “cast enough doubt on OptumHealth to give us pause on the long-term story,” questioning if UnitedHealth Group Incorporated (NYSE:UNH) has “the necessary level of margin offsets heading into year three of v28 phase-in.”

A senior healthcare professional giving advice to a patient in a clinic.

UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments.

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