BofA Global Research cuts UnitedHealth price objective to $290 from $300

BofA Global Research cuts UnitedHealth price objective to $290 from $300

BofA Global Research has lowered its price target for UnitedHealth Group (NYSE: UNH) from $300 to $290, according to a recent analyst note. The stock, currently trading at $267.43, has experienced a significant decline of nearly 47% over the past six months [1]. This adjustment reflects the firm's assessment that UnitedHealth’s pace of improvement will likely be slower than previously expected.

UnitedHealth Group has communicated expectations for "solid but moderate" earnings growth in 2026, with acceleration anticipated in 2027 and subsequent years. The company has not explicitly confirmed its long-term growth target of 13-16%, but it has indicated that it aims to return to "low double-digit ranges" and historical growth levels. This outlook is based on "reasonable growth from well-run businesses, compounding efficiency gains, deploying capital for shareholders, and M&A" [1].

The recent earnings report from UnitedHealth Group disclosed a mixed financial performance. The company reported earnings per share (EPS) of $4.08, which fell short of the anticipated $4.45, representing an 8.31% surprise miss. Despite this, UnitedHealth saw a 13% increase in revenue year-over-year, reaching $112 billion. This earnings miss has raised concerns among investors [1].

The markets today are mixed, with the S&P 500 and Nasdaq 100 posting new record highs, supported by better-than-expected quarterly corporate earnings results and positive trade news. UnitedHealth Group is down more than -4% after reporting weaker-than-expected Q2 adjusted EPS and forecasting full-year adjusted EPS below consensus [2].

The Federal Reserve is expected to keep the fed funds target range unchanged at 4.25% to 4.50% when the 2-day FOMC meeting ends on Wednesday. The markets are awaiting President Trump’s August 1 deadline for trade deals to avoid high tariffs. The 2-day FOMC meeting began today, and the Fed is expected to keep the fed funds target range unchanged at 4.25% to 4.50% when the meeting ends on Wednesday. The markets are awaiting President Trump’s August 1 deadline for trade deals to avoid high tariffs [2].

References:
[1] https://www.investing.com/news/analyst-ratings/bofa-securities-lowers-unitedhealth-price-target-to-300-on-slower-recovery-93CH-4158108
[2] https://www.inkl.com/news/stocks-supported-by-strong-earnings-and-trade-deal-optimism