Piper Sandler Trims UnitedHealth (UNH) Price Target, Maintains Overweight Rating

On June 3, Piper Sandler sharply lowered its price target on UnitedHealth Group Incorporated (NYSE:UNH) to $353 from $552, while maintaining an Overweight rating. The significant downward revision comes as the U.S. Department of Justice is investigating UnitedHealth for potential antitrust violations related to its Medicare Advantage billing practices.

Piper Sandler Trims UnitedHealth (UNH) Price Target, Maintains Overweight Rating

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The updated valuation is based on a 15-times multiple of reduced calendar year 2026 adjusted earnings per share, a metric Piper believes better captures the elevated execution risk UnitedHealth currently faces. The firm acknowledged the scale and complexity of changes underway, including shifts in pricing models as well as the ongoing regulatory scrutiny, as key variables that could affect near-term performance. At the company’s recent Annual Shareholder Meeting, CEO Stephen Hemsley emphasized a renewed commitment to reliability, excellence, and transparency, signaling a strategic reset. His remarks were brief but pointed, offering investors reassurance amid an evolving healthcare landscape.

According to Piper, UnitedHealth Group Incorporated (NYSE:UNH) is entering the early stages of a multi-year operational recovery. The current repricing strategy is viewed as foundational to broader improvements that will unfold over the next three years. While this transition introduces uncertainty, the firm highlighted UnitedHealth’s experienced management team as uniquely suited to navigate the challenges ahead. Piper Sandler maintains a long-term constructive view but acknowledges the road to earnings normalization will be uneven, requiring careful execution and market patience during this critical rebuilding phase.

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