UnitedHealth (UNH) Price Target Cut by Investment Bank

Investment bank Jefferies lowered its price target on UnitedHealth (UNH) to $530 from $609 but kept a Buy rating on the shares.

Jefferies cut its target on the name after the company disclosed challenges being faced by its Medicare Advantage business.

A senior healthcare professional giving advice to a patient in a clinic.

UNH’s Medicare Advantage Issues

Among the challenges that UNH’s Medicare Advantage unit faced were coding, pricing, and interfacing with health professionals, Jefferies noted.

Jefferies believes that the insurer can overcome these difficulties. That’s because the investment bank is confident in the firm’s ability to execute well.

Other Reasons Why Jefferies Remains Confident in UNH

UNH can raise its rates going forward, according to the investment bank. Further, Jefferies predicts that UNH’s earnings per share will come in at $30 for 2026, while the stock’s price-earnings ratio should conservatively be 15. However, the shares could rise above $450 if the company improves its medical utilization rates, Jefferies added.

The Price Action of UNH Stock

In the last month, the shares have dropped 17%, while they have declined 16% in the last three months.

While we acknowledge the potential of UNH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.