UnitedHealth Group stock down after Wolf Research lowers its price target to $330 from $363
UnitedHealth Group stock
an "Outperform" rating, the research organization tapered down its stock price target to $330 from the initial amount of $363. Goldman Sachs sees UnitedHealth as one of its top healthcare stock picks, according to the report by Insider Monkey.
Company facing billing and profit troubles
They did this because the company is dealing with medical billing problems right now. Wolfe Research also revised the 2025 earnings estimate to $18 — showing a more cautious or conservative view, as stated by the reports.
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The reason is that UnitedHealth is under pressure in Medicaid and health insurance exchanges. The firm thinks Optum Health and Medicare Advantage, two parts of UnitedHealth, are facing big drops in earnings, as stated by Insider Monkey report.
Right now, Medicare Advantage is only giving UnitedHealth 1% profit margins, which is much lower than what they normally earn. UnitedHealth is supposed to give a new update about its 2025 earnings soon and explain how it will handle these billing issues, according to the reports.
Experts say some AI stocks may be better
Insider Monkey says UnitedHealth still has potential, but some AI stocks might be better options right now. They say some AI stocks are more undervalued, could grow faster, and have less risk — especially with Trump-era tariffs and onshoring trends helping them, according to the report by Insider Monkey.
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FAQs
Q1. Why did Wolfe Research lower UnitedHealth's stock price target?
Wolfe Research cut the price target to $330 because UnitedHealth is facing medical billing issues and lower profits in key areas like Medicare Advantage and Medicaid.
Q2. Is UnitedHealth still a good investment after the price cut?
Experts like Insider Monkey say it still has potential, but some AI stocks may offer better short-term growth and lower risk.
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