UnitedHealth Stock Tanks: Here's What Oppenheimer Predicts Next
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Shares of the healthcare giant plunged ~8% in after-hours trading Wednesday after word got out that the Justice Department is investigating the company for potential criminal Medicare fraud. According to people familiar with the matter, the probe has been active since at least last summer and is focused on UnitedHealth's Medicare Advantage business practices.
And the timing couldn't be worse. Investors were already trying to make sense of a steep sell-off tied to shaky financial results – not to mention the sudden CEO shake-up. Overall, UNH stock in now down ~51% over the past month.
But not everyone sees doom and gloom. Oppenheimer analyst Michael Wiederhorn, who ranks in the top 3% of Wall Street stock experts, sees a recovery in the cards.
'UNH is clearly struggling with cost trend, but is also taking a conservative posture given the change in CEO. While the outlook for 2025 remains unclear, we do believe the timing of these issues should allow for margin recapture in 2026. With a long and successful track record, we expect UNH to get back on track. We maintain our Outperform rating and would be long-term buyers,' Wiederhorn stated.
That Outperform (i.e., Buy) rating comes with a $400 price target, suggesting a ~30% upside from these battered levels. (To watch Wiederhorn's track record, click here)
Overall, the Street isn't ready to throw in the towel. With 21 analysts backing the stock with Buy ratings and just 4 sitting on the fence with Holds, the broader consensus remains firm: UNH is still a Strong Buy. The average price target lands even higher than Wiederhorn's – at $540.68 – which would mark a ~76% upside from Wednesday's close. (See UNH stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
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