UnitedHealth (NYSE: UNH) was in the spotlight on Tuesday, April 7, soaring more than 8% following a new payment update from the Centers for Medicare & Medicaid Services.
Bullish on the health insurance company, HSBC quickly upgraded UNH shares to “Hold,” with a $300 price target.
At the same time, Bank of America (BofA) raised its own UnitedHealth stock price target from $315 to $337, albeit keeping a “Neutral” rating on the shares.
The firm cited higher multiples resulting from the finalized Medicare deal, while the 2.48% increase in payments to private insurers is well above what the market was expecting.
Bernstein raises UNH share price target
Bernstein also increased its price target on UnitedHealth from $405 to $411, reiterating an “Outperform” rating and arguing the company can sustain margin improvement by keeping benefit growth in check and working on network management.
Furthermore, the asset manager now anticipates a slightly faster recovery in Medicare Advantage, with 2027 margins coming in about 25 basis points above the prior forecast. In addition, it raised its 2027 earnings per share (EPS) estimate by 1.4%.
Is UnitedHealth stock a ‘Buy’?
The latest Medicare developments have significantly improved the near-term appeal of UnitedHealth, with investors hoping to finally see the prolonged downtrend come to an end.
Wall Street is also bullish, with TipRanks data showing UnitedHealth to be a ‘Strong Buy’ on average, according to twenty-three analysts who have commented on the stock in the three months.
Likewise, the average UNH share price target for the next twelve months now sits at $465.95, suggesting that investment firms see it rallying 33.57% over the next year. The most bullish forecast sees it soaring to $440, which implies a 46% upside.
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