BofA Securities Raises UnitedHealth Price Target to $325, Maintains Neutral Rating

BofA Securities raised UnitedHealth Group's (UNH) price target to $325 from $290, maintaining a neutral rating. The analyst cited the company's strong financial performance and market position in the healthcare industry. The upgrade reflects the company's potential for continued growth and stability in an uncertain market environment.

BofA Securities has revised its price target for UnitedHealth Group (UNH) to $325 from $290, while maintaining a neutral rating on the stock. The upgrade reflects the company's strong financial performance and market position in the healthcare industry, as well as its potential for continued growth and stability in an uncertain market environment.

The price target increase was driven by better peer multiples, now calculated at 17.1x compared to 15.3x previously [1]. The analyst also noted the positive impact of Berkshire Hathaway's (BRK.B) investment in UnitedHealth Group, which signals confidence in the company's long-term prospects. Despite the upgrade, BofA Securities remains cautious, citing several key uncertainties that could impact the company's performance over the next year [2].

UnitedHealth Group's Medicare Advantage (MA) business presents one such uncertainty. The Centers for Medicare & Medicaid Services (CMS) will release the 2027 "stars" ratings in mid-October, which could influence the company's profitability and stock performance [2]. Additionally, the company's coding adjustments for patient data could pose a significant risk to its revenue [2].

Despite these near-term risks, BofA Securities remains constructive on UnitedHealth's long-term prospects. The company's strong earnings potential, steady growth in healthcare demand, and potential upside in 2027 make it an attractive investment for patient investors with a multi-year horizon [2].

In other recent news, UnitedHealth Group has announced a quarterly cash dividend of $2.21 per share, set to be paid on September 23, 2025, to shareholders of record as of September 15, 2025 [1]. This dividend comes amid significant investment interest, with Warren Buffett's Berkshire Hathaway disclosing a substantial stake in the company [1].

Analysts have shown continued confidence in UnitedHealth, with Piper Sandler maintaining its Overweight rating and a price target of $280, and UBS reiterating its Buy rating with a price target of $330 [1]. UnitedHealth has emphasized a "return to basics" approach to solidify its operational foundations before pursuing further growth [1].

References:
[1] https://www.investing.com/news/analyst-ratings/unitedhealth-group-stock-price-target-raised-to-325-from-290-at-bofa-93CH-4197371
[2] https://www.tipranks.com/news/nothing-is-ok-right-now-says-bank-of-america-about-unitedhealth-stock-unh