Wolfe Research Affirms 'Outperform' Stance on UnitedHealth Group (UNH) Amid Medical Billing Pressures

UnitedHealth Group Incorporated (NYSE:UNH) is one of Goldman Sachs’ top healthcare stock picks. On July 10, Wolfe Research reiterated an ‘Outperform’ rating on the stock. However, the research firm lowered its price target to $330 from $363, citing the medical billing pressures the company is facing.

The research firm has since revised the company’s 2025 earnings estimate to $18. The revision underscores a more conservative view as UnitedHealth faces industry pressures in Medicaid and health insurance exchanges. The research firm views Optum Health and Medicare Advantage as units facing significant earnings pressure.

According to Wolfe Research, UnitedHealth is generating 1% margins in Mediocre Advantage, which is below its long-term margins. The company is expected to update its 2025 earnings guidance and shed light on its earnings trajectory amid the pressures from medical insurance billing.

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company that offers consumer-oriented health benefit plans and services. It also provides care delivery, care management, wellness, and consumer engagement, as well as health financial services to patients.

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Disclosure: None. This article is originally published at Insider Monkey.