Morgan Stanley Lowered the Firm’s PT on UnitedHealth Group (UNH), Kept an Overweight Rating

UnitedHealth Group Incorporated (NYSE:UNH) is one of the Most Undervalued High Quality Stocks to Buy According to Hedge Funds. On July 13, Morgan Stanley lowered the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) from $374 to $324, while maintaining an Overweight rating on the stock.

The reduced price target comes as analysts believe that the new leadership will establish a conservative outlook for 2025 and 2026. The anticipated conservative outlook is due to the ongoing challenges with Optum and expected increases in investments. However, the analyst also foresees some recovery in Medicare Advantage margins by 2026, thereby keeping his Buy rating on the stock.

Morgan Stanley Lowered the Firm’s PT on UnitedHealth Group (UNH), Kept an Overweight Rating

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UnitedHealth Group Incorporated (NYSE:UNH) is a health care company that operates through two main business segments, including UnitedHealthcare and Optum.

While we acknowledge the potential of UNH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.

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