Bernstein’s Bearish Take: What’s Spooking Analysts About UnitedHealth Group (UNH)?
Wall Street's optimism hits a snag as Bernstein sounds the alarm on UNH.
Subheader: The healthcare giant's cracks start showing
While UnitedHealth dominates the sector, Bernstein's analysts spot vulnerabilities the market might be ignoring. Rising costs? Regulatory headaches? The usual suspects plague even this industry titan.
Subheader: When the smart money gets nervous
Institutional investors track Bernstein's moves closely—their caution suggests deeper turbulence ahead for UNH's stock trajectory. No numbers? Classic analyst move—just vibes and ominous warnings.
Closing jab: Another quarter, another healthcare conglomerate pretending it's immune to systemic risks. The house always wins... until the roof caves in.
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Analyst’s Take on UNH Stock
Wilkes trimmed his 2026 EPS forecast by 13%, lowering it to $30.15 per share from $33.01. He highlighted several factors behind the revision. Wilkes expects slower MA membership growth in 2026, as the company focuses on keeping profits up rather than adding new members. He also noted that a higher medical loss ratio in 2025 is likely to reduce the MA margin to around 1%, creating a smaller earnings base for future growth.
Wilkes also noted slower growth in OptumHealth, UnitedHealth’s healthcare services unit that manages care and wellness programs. He said weaker Medicare Advantage membership could limit OptumHealth’s expansion and revenue growth.
Despite these concerns, the analyst maintained his Market Perform rating, as he believes that the company still has a strong market position and is working to control its costs.
It should be noted that recently several top investors and hedge fund managers added to their stakes in this struggling health insurance giant, reflecting long-term confidence in the company. Buffett’s Berkshire Hathaway (BRK.B) revealed a new $1.57 billion stake in UNH stock. Further, Michael Burry’s Scion Asset Management bought calls on 350,000 shares.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, two Holds, and two Sells assigned in the last three months. At $314.55, the average UnitedHealth stock price target implies a 1.96% upside potential.
