UBS raises UnitedHealth Group’s price target to $460, citing stronger Q1 results and improved Medicare Advantage rates.
UBS analyst AJ Rice increased UnitedHealth Group’s (NYSE:UNH) price target to $460 from $410, maintaining a Buy rating. The adjustment follows stronger-than-expected Q1 results driven by favorable respiratory trends and seasonal cost patterns, alongside improved Medicare Advantage rates and stable ACA enrollment.
Rice noted sector-wide guidance increases but highlighted ongoing cost pressures from specialty drugs, GLP-1 medications, and behavioral health. Earlier, BofA’s Kevin Fischbeck raised UNH’s target to $420 from $380, keeping a Neutral rating after bullish discussions with company leadership.
UnitedHealth Group operates across Optum and UnitedHealthcare segments, serving employer, Medicare, and Medicaid markets. The company expects margin recovery by 2028, though challenges remain in managing rising healthcare costs.