Jefferies Raised Its Target Price on UNH Stock: What’s the Outlook?



Jefferies raised its target price on UNH stock

UnitedHealth Group (UNH) is one of the largest Fortune 500 companies. It is the leading managed healthcare company in the United States. It operates across two business segments: UnitedHealthcare and Optum. In this part of the series, let’s look at analysts’ recommendations for UNH stock.

On October 3, Jefferies raised its target price on UNH stock from $292 to $311. The stock ended the day ~0.10% up at its 52-week high. On September 24, Raymond James also increased its target price on UNH stock from $285 to $304. On September 17, Cowen and Company initiated coverage on UNH stock with an “outperform” rating and a target price of $308. However, Citigroup cut its outlook on the stock from “buy” to “neutral” on September 10. UNH stock fell 1% after the news.

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Analysts’ views on UnitedHealth Group

As of October 4, according to a recent Reuters survey of 24 analysts that cover UNH stock, all but one analyst has a “buy” or “strong buy” recommendation for UnitedHealth Group. Only one analyst has a “hold” rating on UNH stock. None of the analysts gave the stock a “sell” recommendation.

Target prices

According to these analysts, the consensus target price for UNH stock for the next 12 months is $292.33 as of October 4. That target price represents a potential upside of ~8% on an investment in UNH stock on the basis of the stock’s closing price of $270.90 on October 3. UNH stock had a consensus target price of $287.55 a month ago on September 5, which shows analysts’ increased growth expectations and confidence in UNH’s stock outlook.

Analysts’ average target prices for UNH peers Cigna (CI), Aetna (AET), and Anthem (ANTM) are $230.32, $204.8, and $301.11, respectively, implying 8.5%, 0.61%, and 9% returns over the next 12 months.

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