Bernstein Reduces PT on UnitedHealth Group (UNH) Stock

UnitedHealth Group Incorporated (NYSE:UNH) is one of the Most Undervalued Long Term Stocks to Buy According to Hedge Funds. On August 4, Bernstein reduced the price target on the company’s stock to $337 from $377, while keeping an “Outperform” rating, as reported by The Fly. The firm reduced its estimates after the Q2 2025 report in order to reflect UnitedHealth Group Incorporated (NYSE:UNH)’s lower earnings power base in 2025. However, the firm is optimistic about the company’s earnings growth, thanks to the turnaround for both the company and the sector.

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

UnitedHealth Group Incorporated (NYSE:UNH) has updated its 2025 outlook. It expects revenues in the range of $445.5 billion – $448.0 billion, net earnings of at least $14.65 per share, and adjusted earnings of at least $16.00 per share. This new outlook showcases the H1 2025 performance and expectations for the balance of the year, such as higher realized and anticipated care trends. UnitedHealth Group Incorporated (NYSE:UNH) anticipates returning to earnings growth in 2026. The company’s Q2 2025 revenues saw an increase of $12.8 billion YoY to $111.6 billion because of the growth within UnitedHealthcare and Optum.

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q2 2025 investor letter. Here is what the fund said:

 “UnitedHealth Group Incorporated (NYSE:UNH): UNH was the portfolio’s weakest performer in Q2. The company’s Q1 results, reported in April, showed 5% revenue growth but declining earnings as medical cost ratios rose to 84.8%. Higher-than-expected utilization in outpatient procedures, particularly among Medicare Advantage and Medicaid patients, pressured margins. The company subsequently lowered full-year guidance during its June investor update.

The stock sold off sharply in response to concerns that elevated utilization trends could persist through year-end. Margin compression, combined with regulatory uncertainty around Medicare Advantage rate-setting, weighed heavily on investor sentiment. Sell-side analysts revised estimates downward, highlighting near-term earnings risk.

Despite the short-term volatility, we continue to view UnitedHealth as one of the strongest franchises in healthcare. The company’s integrated model, combining insurance, pharmacy benefits, and care delivery, positions it well for long-term value creation. We expect utilization to normalize over the next 12-18 months and believe UNH’s earnings power remains intact over a multi-year horizon.”

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.