TD Cowen Downgrades UnitedHealth (UNH) to Hold, Cuts PT

On May 19, TD Cowen revised its rating on UnitedHealth Group (NYSE:UNH), downgrading it to Hold from Buy and lowered the price target to $308 from $520.

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

The downgrade is attributed to the complications UnitedHealth Group (NYSE:UNH) is facing in its Medicare Advantage. The company’s Q1 2025 results suggest “ominous signs” of a trend of rising medical costs in Medicare Advantage businesses, which is causing investors to lose confidence in the stock.

Analysts are viewing the bleak results as a potential bellwether for the insurance industry, warning that other companies with Medicare Advantage plans could also suffer a similar fate.

UnitedHealth Group’s (NYSE:UNH) stock sank after the company reduced its annual profit forecast and cited medical costs in its privately run Medicare plans that exceeded expectations.

While we acknowledge the potential of UNH as an investment, 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 the cheapest AI stock.

READ NEXT: 10 Best Debt Free IT Penny Stocks To Buy and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.