This Analyst Just Hiked Their UnitedHealth Stock Price Target by 50%. Should You Buy UNH Now?

Core Viewpoint - UnitedHealth (UNH) shares are experiencing a positive trend following a bullish note from Wells Fargo analyst Stephen Baxter, who maintains an "Overweight" rating and raises the price target to $400, suggesting an 8% upside potential from current levels [1][2]. Group 1: Analyst Insights - Baxter's positive outlook is notable as UNH stock has increased over 50% since early August [2]. - Despite UnitedHealth's recent decision to scale back Medicare Advantage offerings affecting approximately 180,000 beneficiaries, Baxter recommends holding UNH due to its dominance in employer-sponsored and government-backed insurance, serving over 50 million members globally [3]. - The investment firm has raised its estimates for UNH's upcoming quarterly release, anticipating the extension of increased subsidies [4]. Group 2: Financial Metrics - UNH's care delivery and analytics unit, Optum, is described as a structural growth engine that provides margin resilience, countering near-term utilization pressures [5]. - Despite a significant rise in stock price, UNH shares are trading at an attractive valuation of less than 1x sales [5]. - The stock offers a healthy dividend yield of 2.39%, appealing to income-focused investors [4]. Group 3: Market Sentiment - Warren Buffett's recent disclosure of a sizable position in UnitedHealth reflects confidence in the company's long-term growth and stability [6]. - Baxter believes that the recent selloff of UnitedHealth due to regulatory scrutiny and rising medical costs is overblown, presenting a compelling entry point for long-term investors [6]. - Overall, Wall Street remains optimistic about UnitedHealth's ability to maintain momentum [8].