UnitedHealth Group’s (UNH) shares have surged 6.40% in recent days, reversing a year-to-date decline of 45.18%. The health insurance company has faced numerous challenges in the past few months, including the assassination of its CEO Brian Thompson, changes in leadership, and allegations of Medicare fraud.
Despite these issues, analysts’ consensus rating for UNH remains Strong Buy, with 21 Buy ratings and five Hold ratings over the last three months. The average price target for the stock has been reduced to $400, but some top analysts still maintain a long-term Outperform rating. Notably, Oppenheimer’s Michael Wiederhorn cut his price target from $600 to $400, citing concerns over cost trends.
Wiederhorn stated that while UNH is struggling with cost issues, it is taking a conservative approach under new CEO Stephen Hemsley. He also noted that the outlook for 2025 remains unclear but predicted that UnitedHealth should be able to recapture margins in 2026. This has resulted in an immediate price cut, but Wiederhorn maintains a long-term bullish stance on the stock.
As of now, the potential upside for UNH shares is around 66.12%, based on an average price target of $450.09. With its Strong Buy rating and improving fundamentals, investors may want to consider buying UnitedHealth stocks despite recent challenges.
Source: https://www.tipranks.com/news/is-unitedhealth-stock-unh-a-buy-in-2025