Morgan Stanley analyst Erin Wright has consistently rated UnitedHealth (UNH) stocks, recently increasing the price target from $325 to $395, suggesting a potential rise of over 11%. Earlier this week, she boosted the price target for UNH following positive business updates from health insurance companies. Wright highlighted that UNH is the first managed care organization (MCO) in her report to share expectations for the 2026 Medicare Advantage (MA) star rating in this encouraging update.
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Analysts Cheer UNH’s Positive Update
UnitedHealth stocks rose earlier this week after favorable business updates. The company reaffirmed its previously issued adjusted earnings per share (EPS) outlook for the year. UNH noted that, according to a preliminary review from the Centers for Medicare & Medicaid Services (CMS) regarding the 2026 Star 2026/2027 payment year, around 78% of its memberships are expected to be rated as four-star or higher in its MA plans.
Wright has previously expressed a “gradual positivity” about UNH, especially after engaging with management, attributing the company’s potential turnaround to improved profits from its MA and Optum Health Business.
In her latest research notes, Wright remarked that UNH was the first MCO to issue a positive update, soon followed by Centene (CNC).
She also mentioned that CVS Health (CVS) has a “more balanced” approach regarding star commentary. CVS continues to be among national MA players, including Humana (HUM) and EcleoHealth (ELV), who haven’t yet officially shared their expectations for memberships rated four stars or above.
Should UNH stock be bought, sold, or held?
Even with ongoing challenges tied to high health costs in the MA sector and federal investigations, Wall Street remains optimistic about UnitedHealth’s long-term growth potential.
Overall, UnitedHealth Stock has a strong “buy” consensus, supported by 16 buy ratings, 2 hold recommendations, and 1 sell suggestion. The average target for UNH stock sits at $324.35, implying an 8.5% downside from current prices. Although shares have surged by over 35% in the last month, they are still down 30% compared to last year.
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