Unitedhealth Group Inc Maintains Buy Rating Despite Lowered Price Target

On June 14, 2023, analyst Whit Mayo from SVB Securities maintained his Buy rating for Unitedhealth Group Inc (NYSE: UNH), a leading provider of health benefit plans and services. However, he did lower his price target from $625.00 to $560.00.

Mayo based his update on management commentary from a competitor's conference, which suggested that "outpatient activity, notably in the Medicare business, had been higher during Q2." UnitedHealth Group indicated that some of this activity is related to a "pent-up demand that is long-dated enough to incorporate into 2024 Medicare Advantage bids."

Furthermore, the company reported that its FY 2023 Medical Loss Ratio (MLR) will be in the top half of guidance, and its Q2 MLR will be at the high end or slightly above the FY guidance. For those unfamiliar with the term, an MLR is a calculation that indicates how much of an insurer's net premiums go toward paying claims.

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