UnitedHealth Group (UNH) Price Target Cut by $30 at Wells Fargo

UnitedHealth Group Incorporated (NYSE:UNH) is included among the 7 Best Non-REIT Dividend Stocks to Invest in.

UnitedHealth Group Incorporated (NYSE:UNH) operates across multiple healthcare and services platforms. Its business includes Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, with coverage spanning employer plans, Medicare and retirement offerings, and government-sponsored programs.

On January 30, Wells Fargo analyst Stephen Baxter cut his price recommendation on UnitedHealth Group Incorporated (NYSE:UNH) to $370 from $400. The firm, however, kept an Overweight rating. Coming out of the Q4 2025 report, the firm pointed to several pressure points. Medicare Advantage rates disappointed, Optum Health results raised concerns, and visibility into 2026 guidance for that segment stayed limited. Wells Fargo said it is trimming estimates to better reflect its updated views on Medicare Advantage and Medicaid into 2027.

UnitedHealth Group Incorporated (NYSE:UNH)’s 2026 revenue outlook landed below Wall Street expectations, though that was only part of the story. The bigger issue came from Washington. The Centers for Medicare & Medicaid Services proposed a 0.09% increase in Medicare Advantage rates for 2027, roughly in line with 2026 levels. Many analysts had expected something closer to a 4% to 6% increase, so the gap was hard to ignore.

The CMS proposal sent a ripple through the health insurance space. Several stocks moved lower as investors recalibrated expectations. UnitedHealth stands out in this group. Its UnitedHealthcare division is the largest Medicare insurer in the U.S. by membership, which makes the company more sensitive to shifts in Medicare Advantage pricing.

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