UnitedHealth Stock Rises as Analysts Don’t Abandon It After Yesterday’s Slump

Shares of UnitedHealth Group (UNH) rebounded modestly after plunging 18% Tuesday as the health insurance provider withdrew its guidance because of rising costs and CEO Andrew Witty stepped down.

The shares were likely getting a boost from supportive comments from several analysts who didn’t change their ratings on the stock, although they did lower their price targets.

UBS kept its “buy” rating, explaining that it continues “to believe the assets and identification of issues will ultimately lead to a return to growth, albeit on a longer timeline than anticipated.” UBS dropped its price target to $400 from $525.

Oppenheimer analysts retained their “outperform” rating, writing that “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,” adding they would be long-term buyers. Oppenheimer’s price target also is $400, down from $600.

Morgan Stanley Says New CEO Hemsley ‘Most Appropriate Person to Step In’

Morgan Stanley analysts stuck with their “overweight” rating, arguing that after talking with UnitedHealth executives, “we feel somewhat more confident that the guidance pull is predominantly driven by incremental cost pressure in the [Medicare Advantage] book which accelerated in April, as opposed to potentially longer term or more structural issues across OptumHealth.” The analysts also believe that Witty’s replacement, former CEO Stephen Hemsley, “is the most appropriate person to step in as CEO at this juncture in light of the recent setbacks.” Morgan Stanley set the new price target at $374 from $563.

UnitedHealth Group shares fell to their lowest level in more than four years yesterday, and even with today’s slight gains they’re down about 38% for 2025.