Morgan Stanley Analyst Bullish on UnitedHealth’s Recovery Despite Stock Decline
UnitedHealth Group (UNH) shares have plunged 37% year-to-date in 2025 but show early signs of recovery with a 4% gain over the past quarter. The healthcare giant regained market confidence after upgrading its Medicare Star Ratings outlook.
Morgan Stanley's Erin Wright maintains an Overweight rating with a $325 target, citing management's convincing turnaround strategy. Wright ranks in the top 3% of analysts tracked by TipRanks, boasting a 64% success rate and 13.1% average return on ratings.
Key catalysts include projected Medicare Advantage margin expansion from 2-2.5% in 2025 to potentially 4% by 2027. The company's strategic plan exits affecting 600,000 members are expected to have less retention impact than historical precedents.