Morgan Stanley Analyst Cuts UnitedHealth Stock's Price Target to $342, Maintains Buy Rating

Morgan Stanley analyst Erin Wright cut UnitedHealth Group's (UNH) price target to $342 from $374, while maintaining a Buy rating. Wright expects the company to provide "conservative" earnings guidance for 2025, potentially falling short of consensus estimates. She anticipates UNH might reinstate its guidance, but set it lower than her forecast of $20.94 per share for 2025.

Morgan Stanley analyst Erin Wright has lowered UnitedHealth Group's (UNH) price target to $342 from $374, while maintaining a Buy rating. This move comes as Wright anticipates the company to provide "conservative" earnings guidance for 2025, potentially falling short of consensus estimates. She expects UNH to reinstate its guidance but set it lower than her forecast of $20.94 per share for 2025 [2].

Wright's outlook reflects ongoing challenges at UnitedHealth's health services unit, Optum. The company may need to spend more money to address these issues, but she believes profits from Medicare Advantage could improve in 2026. UnitedHealth's full-year earnings outlook was previously lowered in April to between $26 and $26.5 per share before being withdrawn in May due to concerns over high medical costs [2].

In other recent news, UnitedHealth Group has faced scrutiny over its Medicare billing practices, with the Justice Department conducting an investigation. The company has also seen significant leadership changes, including the appointment of Mike Cotton as the head of its Medicaid segment and the expansion of Bobby Hunter's role to oversee both Medicaid and Medicare programs. Additionally, Stephen Hemsley has returned as CEO, leading to further management shifts, including Amar Desai stepping down as CEO of Optum Health [1].

UBS and Wolfe Research have also lowered their price targets for UNH, reflecting concerns over margin pressures, particularly in Medicare Advantage. UnitedHealth's Optum Health division, which generated approximately $105 billion in revenue in 2024, remains a focal point in these evaluations. The company plans to reissue its 2025 earnings guidance during its upcoming second-quarter earnings report [1].

UnitedHealth Group closed the most recent trading day at $300.58, moving -1.16% from the previous trading session. The upcoming earnings release of UnitedHealth Group will be of great interest to investors. The company's earnings report is expected on July 29, 2025 [3].

References:
[1] https://za.investing.com/news/analyst-ratings/unitedhealth-group-price-target-lowered-to-340-by-leerink-partners-93CH-3789496
[2] https://www.tipranks.com/news/proceed-with-caution-top-analyst-cuts-unitedhealth-stocks-unh-price-target
[3] https://finance.yahoo.com/news/unitedhealth-group-unh-stock-slides-215005317.html