Barclays Lifts PT on UnitedHealth Group (UNH) Stock

UnitedHealth Group Incorporated (NYSE:UNH) is one of the Best Reddit Stocks to Invest in Now. On September 3, Barclays analyst Andrew Mok lifted the price target on the company’s stock to $352 from $337, while keeping an “Overweight” rating, as reported by The Fly. The firm adjusted its estimates and targets in the managed care and healthcare facility group after the volatile Q2 2025 earnings season. As per the analyst, the group valuations have increased recently, likely indicating that investor sentiment as well as estimates have bottomed out.

From here, Barclays expects several potential catalysts, such as September budget deals, final pricing for Medicare Advantage and Affordable Care Act plans as well as Medicare Advantage star ratings for the 2027 plans. Relative to estimates, the firm opines that UnitedHealth Group Incorporated (NYSE:UNH) and CVS Health provide the most near-term upside. UnitedHealth Group Incorporated (NYSE:UNH)’s Q2 2025 revenues increased $12.8 billion YoY to $111.6 billion, thanks to the growth within UnitedHealthcare and Optum. Its cash flows from operations came in at $7.2 billion in Q2 2025, or 2.0 times net income. For FY 2025, UnitedHealth Group Incorporated (NYSE:UNH) expects revenue in the range of $445.5 billion – $448.0 billion.

Janus Henderson Investors, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Conversely, healthcare selection and an overweight position detracted from relative performance. The sector remains challenged due to government policy uncertainty and initiatives to encourage domestic drug manufacturing. UnitedHealth Group Incorporated (NYSE:UNH) was a top relative detractor. The company missed earnings expectations and lowered financial guidance twice during the quarter, citing unexpectedly high medical costs and stronger-than anticipated Medicare Advantage demand. Its Optum Health unit also came under pressure as patients required more intensive care, compounded by ongoing Medicare funding cuts. The company appointed a new CEO who previously led UnitedHealth successfully for a decade. Despite recent challenges, we have confidence in new management and believe the company maintains its structural scale and data competitive advantages that should allow market share gains over time.”

While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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