UnitedHealth Group Appoints New CFO Amid Financial Challenges, Analysts Predict 36.93% Upside Potential

UnitedHealth Group (UNH) has appointed Wayne S. DeVeydt as its new CFO amid financial challenges. Analysts project a 36.93% potential upside, while GuruFocus estimates a 181.48% upside based on its GF Value metric. The company faces lower revenue and earnings forecasts for 2025 due to rising medical costs.

UnitedHealth Group Incorporated (NYSE: UNH) has appointed Wayne S. DeVeydt as its new Chief Financial Officer (CFO), effective immediately. The appointment comes amidst significant financial challenges, including rising medical costs and a probe by the Department of Justice into its billing practices [2].

DeVeydt, who previously served as managing director and operating partner at Bain Capital and CFO of UnitedHealth's rival Elevance Health (ELV), will be responsible for operational improvement and growth acceleration at UNH. His predecessor, John F. Rex, will assume a strategic advisory role to CEO Stephen Hemsley [2].

Analysts are cautiously optimistic about UNH's prospects. Oppenheimer analyst Michael Wiederhorn recently reduced the price objective on UNH's stock to $325, while maintaining an "Outperform" rating. Wiederhorn noted that UNH's 2025 adjusted-EPS guidance of $16.00-plus, while potentially trough earnings, indicates a return to growth in 2026 and beyond [1].

GuruFocus estimates a 181.48% upside potential for UNH based on its GF Value metric, while analysts project a 36.93% potential upside. However, the company faces lower revenue and earnings forecasts for 2025 due to higher-than-expected medical costs. UNH's healthcare expenses have been increasing faster than the premiums it charges, leading to a Q2 earnings miss and guidance shortfalls [2].

The appointment of DeVeydt and the recent analyst downgrades reflect the industry's ongoing challenges. UnitedHealth and its peers in the insurance sector are grappling with higher medical costs in Medicare Advantage plans. Despite these challenges, Wall Street maintains a Moderate Buy consensus rating for UNH stock, with an average price target of $321.76, indicating a 28.9% upside potential from current levels [2].

References:
[1] https://finance.yahoo.com/news/oppenheimer-reduces-pt-unitedhealth-group-033234095.html
[2] https://www.tipranks.com/news/unitedhealth-unh-replaces-cfo-amid-challenging-times