Bernstein maintained its ‘Outperform’ rating on UnitedHealth, citing expectations for a turnaround in both the company and the broader healthcare sector.
Bernstein has lowered its price target on UnitedHealth Group to $337 from $377 while keeping an ‘Outperform’ rating on the shares.
The firm said it reduced its estimates following UnitedHealth’s second-quarter results to reflect a lower earnings power base in 2025.
However, Bernstein remains optimistic on the company’s earnings growth outlook, citing a potential turnaround for both UnitedHealth and the broader healthcare sector.
UnitedHealth reaffirmed its full-year 2025 outlook after hitting pause earlier this year, but the new numbers didn’t quite land where Wall Street had hoped. The company expects revenue between $445.5 billion and $448 billion and adjusted earnings of at least $16 per share.
The figures represent a significant drop from the $27.66 EPS it reported in 2024 and are well below analysts’ forecasts of $449.07 billion in revenue and $20.90 EPS, according to Fiscal.ai.
UnitedHealth reported a second quarter (Q2) medical cost ratio of 89.4%, up 430 basis points from the prior year. The company now expects a full-year 2025 medical cost ratio of approximately 89.25%, plus or minus 25 basis points.
Separately, UnitedHealth announced that Wayne DeVeydt will assume the role of chief financial officer on Sept. 2, succeeding John F. Rex, who will transition into a strategic advisory position.
DeVeydt previously served as CFO of Anthem (now Elevance Health) and CEO of Surgery Partners.
Meanwhile, Baird downgraded the stock to ‘Underperform’ from ‘Neutral’ and slashed its target to $198, citing concerns over OptumHealth margins and limited upside even in a bullish scenario.
Truist, TD Cowen, Oppenheimer, Piper Sandler, BofA, and KeyBanc all lowered targets, with most firms keeping their ratings unchanged. Truist now sees 2025 earnings per share (EPS) at $16.18 and 2026 at $17.20.
JPMorgan and KeyBanc believe UnitedHealth is setting beatable expectations, while BofA flagged modest 2026 growth as a concern despite viewing the guidance as more realistic.
On Stocktwits, retail sentiment for UnitedHealth — among the top trending tickers late Sunday — was ‘extremely bullish’ amid an 84% jump in message volume over the past week.
One user said they were considering adding to their UnitedHealth position later in the week if the stock doesn’t bounce off current support levels, noting that they already hold 2026-dated call options but may extend their position further.
Another user predicted a near-term bounce in the stock, describing it as a long-term hold despite potential mid-term consolidation, and expressed confidence in the immediate price action.
UnitedHealth’s stock has declined 52.9% so far in 2025.
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