These Analysts Slash Their Forecasts On UnitedHealth

Core Viewpoint - UnitedHealth Group Inc announced the resignation of CEO Andrew Witty, with Stephen Hemsley set to succeed him, while the company suspended its 2025 outlook due to accelerating care activity [1]. Group 1: Leadership Changes - CEO Andrew Witty will resign for personal reasons, and Stephen Hemsley, who previously served as CEO from 2006 to 2017, will take over the role [1]. - Witty will transition to a senior adviser position to the new CEO, while Hemsley will continue as chairman of the board [1]. Group 2: Financial Performance - UnitedHealth reported adjusted EPS of $7.20 for April, an increase from $6.91 year-over-year, but below the consensus estimate of $7.29 [3]. - Revenues rose by 6.8% year-over-year to $109.6 billion, also missing the consensus of $111.60 billion [3]. - Following the announcement, UNH shares increased by 2.7%, trading at $319.78 [3]. Group 3: Future Outlook - The company noted that it expects to return to growth in 2026, while also indicating that medical costs for many new Medicare Advantage beneficiaries were higher than anticipated [2]. - UnitedHealth has broadened its benefit offerings compared to the first quarter [2]. - The company has suspended its 2025 outlook due to the acceleration in care activity [1]. Group 4: Analyst Ratings and Price Targets - Keybanc analyst Matthew Gillmor maintained an Overweight rating on UnitedHealth but lowered the price target from $575 to $450 [7]. - Baird analyst Michael Ha also maintained an Outperform rating while reducing the price target from $510 to $356 [7].