Cantor Fitzgerald Reaffirms Overweight Rating on UnitedHealth
Cantor Fitzgerald has reaffirmed its Overweight rating for UnitedHealth Group (UNH) and set a price target of $495. The investment firm believes that UNH is undervalued based on its Fair Value analysis, which suggests significant upside potential.
The company's recent earnings beat and improved guidance have caught the attention of investors, with several analysts increasing their price targets for UNH. BofA Securities raised its target to $512, citing a 31% earnings beat and a 12% increase in guidance. Mizuho also increased its target to $493, following a solid earnings beat.
Cantor Fitzgerald's survey indicates that UNH priced independent dispute resolution later than its peers, including Elevance Health, CVS Health, and Cigna. The firm believes that this has resulted in 50 basis points of the 100 basis points of pressure in 2026. However, the survey supports UNH's improving 2027 margin outlook, with blended risk pricing up 180 basis points to 10.5%.
Management has framed a multi-year margin recovery for UNH, with improvement in 2027 via medical management and cost efficiencies. The company expects to reach low-end target margins by 2028. A legislative independent dispute resolution fix appears unlikely before the 2028 elections.