Bank of America upgraded UNH to Buy and raised its price target to $450, citing improving medical cost trends and earnings upside.
UnitedHealth Group shares surged over 5% to approximately $397 after Bank of America upgraded the stock to Buy. The firm raised its price target to $450 and increased earnings estimates for 2026 and 2027, citing improving medical cost trends and a favorable risk-reward outlook ahead of earnings.
Analysts highlighted strengthening data points in the managed care sector, particularly for Medicare Advantage, with UnitedHealth positioned as a potential leader. They noted improved visibility in margin recovery and moderating utilization trends, suggesting Q1 strength was not solely driven by temporary factors like weaker flu activity.
The upgrade reflects confidence in UnitedHealth’s earnings power exceeding current guidance, with proprietary tracking data supporting a constructive view for Q2. The firm also emphasized the stock’s potential to lead a broader sector recovery if utilization trends continue to moderate.