Argus upgraded its UnitedHealth Group (NYSE: UNH) stock from “Hold” to “Buy” on Wednesday, April 22, with a price target of $400, implying 15% upside from the last close of $346.
Analyst David Toung argued that the company is on a positive trajectory, with improving medical cost management, better pricing action, and an aging population as key growth drivers.
“Q26 results demonstrated improved medical cost management… Furthermore, UNH’s pricing actions and selective market exits in Medicare Advantage, along with repositioning of its Optum businesses, will likely drive earnings growth,” Toung wrote.
Similarly, the note cited the demographics of an aging population as another favorable factor, while the ongoing leadership changes are expected to boost execution efficiency.
“The demographics of an aging population remain favorable, as the increasing population of older Americans will need health benefit plans and services,” the analyst added.
UnitedHealth beats first-quarter expectations, Truist bullish on AI investments
Truist Securities also lifted its price target on UnitedHealth from $370 to $395, reiterating a “Buy” rating following the company’s stronger-than-expected first-quarter results.
Indeed, Cash flow beat estimates, giving UnitedHealth additional flexibility to fund investments and pursue mergers and acquisitions. Moreover, the company announced a share buyback program exceeding $2 billion for the first half of 2026, alongside ongoing deleveraging efforts.
In addition, Truist added that UnitedHealth’s continued investments in artificial intelligence (AI) and automation could unlock further efficiencies and growth across its operations.
Is UnitedHealth stock a buy?
Based on 25 analyst ratings collected on TipRanks over the past three months, the consensus on UnitedHealth currently stands at a “Moderate Buy.”
UNH share price target. Source: TipRanks
However, there is a notable skew toward bullish sentiment, with 19 “Buy” ratings, 5 “Holds,” and just 1 “Sell.”
On the price target side, analysts project an average 12-month target of $375.26, implying an 8.45% upside. Forecasts vary widely, with a high estimate of $440 and a low of $287.
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