On Wednesday, UnitedHealth Group Inc. (NYSE: NYSE:UNH) saw its price target increased to $600 from the previous $570, while retaining a Buy rating, as announced by a market analyst firm. The firm's decision follows UnitedHealth Group's resilience in the face of a cyberattack that caused a temporary halt to the Change Healthcare (NASDAQ:CHNG) claims processing and payments network.
The company's UnitedHealthcare and Optum segments have reportedly shown robust revenue growth despite the cyber incident. The analyst noted that medical utilization trends are aligning with expectations, suggesting a stable operational environment for the healthcare giant.
Significant revenue increases were highlighted in the Optum Health and Optum Rx divisions, both recording a 13% rise. Furthermore, the analyst pointed out that Optum Insight's growing backlog is anticipated to contribute to revenue and earnings expansion within the health services segment for the year 2024.
In other recent news, UnitedHealth Group has seen several updates to its stock price target by various financial firms. Wells Fargo (NYSE:WFC) increased the price target to $630, citing potential positive developments in 2025. Meanwhile, Baird raised its price target to $640, expressing confidence in the healthcare giant's performance.
RBC Capital also raised its target to $615, noting a solid performance in the Medicare business. Jefferies significantly increased the price target from $481 to $647, based on expectations of strong Medicare Advantage growth with better margins by 2025. Truist Securities also raised the price target to $640, following UnitedHealth's robust second-quarter performance and reaffirmed full-year 2024 guidance.
These updates reflect recent developments and analysts' confidence in UnitedHealth Group's ability to navigate market conditions and maintain its growth trajectory. However, UnitedHealth Group has also faced challenges, including a Federal Trade Commission scrutiny over its pharmacy-benefit management pricing strategies and a cyberattack compromising the private data of an estimated one-third of Americans.
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