TD Cowen Downgrades UnitedHealth’s Rating

TD Cowen has decided to change its stance on UnitedHealth, downgrading the health insurance company’s rating from a buy to a hold. The company’s price target has also seen a significant reduction, dropping from $520 to $308 per share. Despite this downgrade, there’s been a slight increase of about 6% in share value since the close of trading on Friday.

Analyst Ryan Langston pointed out that alterations to the V28 Medicare Advantage model could potentially create ongoing challenges for UnitedHealth. He noted, “Changes to the V28 risk model could disproportionately impact UNH given its specific risk adjustment factors. The scores for 2026 will be shaped by these adjustments over the next three years.”

The report also mentioned that UnitedHealth is under investigation by the U.S. Department of Justice. If this investigation progresses, especially in relation to commercial or Medicaid matters (though UnitedHealth claims otherwise), it could produce further complications. Interestingly, despite the downgrade, analysts observed that the stock rose by more than 4%.