Jefferies Remains Bullish on UnitedHealth Group Incorporated (UNH) Amid Potential Margin Improvements

UnitedHealth Group Incorporated (NYSE:UNH) is one of the 13 best Fortune 500 stocks to invest in now.

On October 17, 2025, Jefferies increased its price target on UnitedHealth Group Incorporated (NYSE:UNH) from $317 to $409, maintaining a “Buy” rating.

The investment firm’s revised target reflects UnitedHealth Group Incorporated (NYSE:UNH)’s potential margin improvements in its Medicare Advantage business in 2026. These improvements allowed the firm to project roughly 100 basis points of medical loss ratio improvement. Furthermore, Jefferies expects segment volatility to decrease, citing assertive group repricing and changes in commissions and distributions as contributing factors.

Meanwhile, the firm expects margin expansion potential in about 25% of value-based care lives with affiliated doctors in UnitedHealth Group Incorporated (NYSE:UNH)’s Optum Health segment. Accordingly, Jefferies forecasts 5.7% margins by 2027, roughly 210 basis points above current Street estimates.

Through its UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx businesses, UnitedHealth Group Incorporated (NYSE:UNH) operates as a healthcare company globally.

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