Goldman Sachs Initiates Coverage of UnitedHealth Group Incorporated (UNH) with Buy Rating

UnitedHealth Group Incorporated (NYSE:UNH) is among the 14 Best Big Name Stocks to Invest in Right Now. On October 14, Goldman Sachs analyst Scott Fidel initiated coverage of the stock with a Buy rating. It also assigned a price target of $406 for its shares, representing an upside potential of 12.31%.

In a research note to investors, Fidel noted that the managed care industry was in the midst of its most significant underwriting downturn in more than 15 years. The firm suggests increased exposure to Medicare Advantage as it anticipates a margin recovery phase starting in 2026.

However, the Goldman analyst noted that he does not expect the Medicare Advantage recovery to play out uniformly across the wider group. The firm also added that there will be a longer path to cyclical recovery in Medicaid and the healthcare exchange.

Moreover, Fidel expects UnitedHealth Group Incorporated’s (NYSE:UNH) new management to review its business practices, address shareholder concerns, and enforce more conservative pricing to reflect upwardly revised medical cost baselines across vital business lines.

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified heal‌thcare compan‌y that​ provides insurance services‍ in the U​S through its UnitedHealthcare segment and‍ operates internationally through its Optum division.

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