- UNH actions advance cautiously after the mass sale of almost 18% on Tuesday.
- Bofa reduces the target price from $ 560 to $ 350, cataloging it as neutral.
- Wall Street analysts reduce prices to a large extent to between $ 350 and $ 400, but remain optimistic.
- Bofa’s analyst, Gajuk, foresees a gain per share of 2025 between $ 21.00 and $ 23.63.
UnitedHealth Group (UNH) It opened more than 2.5% higher on Wednesday after the amazing loss of 17.8% of the previous session. The repercussions that the largest private health insurer in the US suspended his projection while dealing with higher medical costs than expected have sent chills in the back of the institutional shareholders.
Together with the replacement of his CEO on Tuesday by the president of the Board, United projected that he will return to growth in 2026 after dealing with this year’s complications.
UNH fell from 378.75 to $ 311.38 on Tuesday, and much of Wall Street has responded to mass sale with subsequent sales. The widest market advances slightly on Wednesday while Wall Street banks continue to reduce their previous recession forecasts in the US this year after US President Donald Trump agreed with China to reduce extremely high tariffs during the weekend.
News about the actions of UnitedHealth
Wall Street analysts, who never want to stay out, have reduced their objective prices on UNH’s actions quickly and unanimously. The Bank of America (BOFA) was particularly concerned about United’s decision to reduce his guide by 2025 during his profit call on April 17 before suspending all projection on Tuesday, May 13.
On April 17, when UNH experienced the beginning of the current mass sale that has seen the price of the shares falling around 50% from its historical maximum, the health insurer cut its previous guide by 2025 of an average point of 29.75 $ in profits adjusted by Action (EPS) to an average point of 26.25 $ – or a decrease of 12%.
Bofa’s analyst, Joanna Gajuk, now interprets the suspension of the guide as an adjusted EPS that could fall another 10% to 20% from the previous cut. This would mean a range of $ 21.00 to $ 23.63 in EPS adjusted for the year.
“We see the decision to withdraw the guide of 2025 as a combination of uncertainty around the prevalence and persistence of the greater [utilización] Medical, as well as give the new CEO additional time to familiarize yourself with the 2025 guide for which you are now responsible, “Gajuk wrote in reference to the new CEO and former President Stephen Hemsley.
Gajuk reduced its target price on UNH shares of 560 $ to $ 350 and moved it from its purchase rating to a neutral perspective. Other notable objective prices among analysts include:
- Jefferies reduces the target price to $ 400 from $ 530
- Readck Partners reduces the target price to $ 355 from $ 520
- Oppenheimer reduces the target price to $ 400 from $ 600
- Raymond James reduces market performance from strong purchase
- Deutsche Bank reduces the target price to $ 362 from $ 521
- Morgan Stanley reduces the target price to $ 374 from $ 563
- Oppenheimer reduces the target price to $ 400 from $ 600
- Wells Fargo reduces the target price to $ 351 from $ 677
It is important to keep in mind that, despite the reduced objective prices at Wall Street research tables, many analysts still maintain positive opinions about UnitedHealth in the future. Keybanc, Baird Equity Research, Raymond James and Deutsche Bank, among others, maintained positive perspectives on the action at this reduced price level.
Unitedhealth Group actions prognosis: Trust the graphics
Despite the great pain of the mass sale on Tuesday, it was another victory for the operators that follow the Fibonacci levels. The extreme mass sale on Tuesday stopped near the Fibonacci extension of 161.8% about $ 313.
DAILY AH Shares Chart with Fibonacci Extension
If you followed the advice I gave on May 9, you bought UNH shares in the $ 380, feeling fortunate to buy a solid dividend growth value in minimum of four years. If instead, you noticed that there was no nearby support structure until the Fibonacci extension went into action by $ 313, you made a wise decision. UNH shares stopped at $ 309.10 and closed at $ 311.38. May this be a lesson for all of us: trust the graph about your instinct.
On the negative side, the next extension of Fibonacci is very down in 197.78 $, while the positive side presents the level of 384.51 $ on the 100% score and 78.6% of Fibonacci in 409.21 $.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
