UnitedHealth Upgraded to Outperform with $330 Target After 50% Decline
Raymond James upgraded UnitedHealth Group to Outperform with a $330 price target versus a $364 consensus, citing potential AI-driven G&A cost cuts and margin expansion in Optum Health. The stock has fallen 17% in 2026 and nearly 50% over the past year, creating an attractive entry point.
1. Analyst Upgrade
Raymond James raised UnitedHealth Group to Outperform with a $330 price target, highlighting a potential rebound from current levels against a consensus analyst target of $364.
2. Earnings Projections
The upgrade includes forecasts that 2027 and 2028 earnings per share could exceed consensus estimates by roughly 7.5% and 8%, respectively.
3. Cost-Cutting and Margin Expansion
Analysts point to AI-driven efficiency measures to trim general and administrative expenses, margin improvements within Optum Health and further integration of recent acquisitions.
4. Stock Performance and Outlook
UnitedHealth shares have dropped 17% year to date and nearly 50% over the last 12 months, pressured by billing investigations and an unexpected CEO change, with first-quarter earnings due April 21.