UnitedHealth (UNH) PT Trimmed to $385 at UBS

UnitedHealth Group Incorporated (NYSE:UNH) is one of the best high growth stocks. On June 25, UBS reiterated a Buy rating on UNH but trimmed its price target for the stock to $385 from $400.

The revised price target follows statements made by UnitedHealth’s reinstated CEO during the company’s annual meeting on June 2, wherein he confirmed that updated 2025 guidance will be issued alongside the Q2 earnings report scheduled for July 29. Despite the adjustment, UnitedHealth, boasting a market capitalization of $273.56 billion, continues to demonstrate robust financial performance, with an 8.06% year-over-year revenue growth.

UBS noted that CEO Hemsley’s use of the word “prudent” to describe the upcoming outlook made analysts think the company might lower its earnings guidance from the earlier estimate of $22.50 per share. As more investors now expect earnings to be closer to $20 per share for 2025, UBS has adjusted its own forecast to match this new expectation.

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

UBS also lowered its profit expectations for Medicare Advantage, cutting the expected margin by 0.5% to 1.5%. The firm also reduced its forecast for Optum Health’s profit margin from 5% to 4.5%, showing a more cautious view of how well the business will perform in the near future.

UnitedHealth Group Incorporated (NYSE:UNH) delivers health benefit plans, clinical care and management, data analytics, and pharmacy solutions to a broad range of stakeholders, including individuals, employers, government entities, and healthcare providers.

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