UnitedHealth Price Target Trimmed Amidst Sector Weakness; Analyst Remains Positive on Long-Term Prospects

UnitedHealth Group (NYSE: UNH) is having to go through a period of market turbulence, reflected in recent analyst downgrades and a declining share price.

While near-term headwinds are undeniable, many believe the healthcare giant retains significant long-term growth potential.

Bernstein recently lowered its price target on UnitedHealth to $337 from $377, reiterating an “Outperform” rating, a move mirroring adjustments from other firms following the company's Q2 earnings report.

Shares in UnitedHealth closed at $237.77 on August 1, 2025, marking a 4.72% drop on the day and continuing a steep decline from above $280 earlier in the week. The stock has fallen over 15% in the last week and is down more than 53% this year.

The recent price action underscores the substantial volatility UnitedHealth has experienced throughout 2025. The company's market capitalization stands at approximately $215.69 billion, with a dividend yield of around 3.72%.

Despite the challenges it faces, UnitedHealth remains a dominant player in the private health insurance market, boasting diversified operations across insurance and healthcare services.

Bernstein's price target reduction reflects a revised outlook for UnitedHealth's earnings power base in 2025. The firm adjusted its estimates following the Q2 report, acknowledging a softer near-term performance.

However, Bernstein remains optimistic about UnitedHealth's earnings growth, anticipating a turnaround for both the company and the broader healthcare sector.

The perspective aligns with other analysts' view that current challenges are cyclical and that UnitedHealth's underlying strengths will eventually drive a recovery.

Other firms have followed suit with similar adjustments:

• Oppenheimer adjusted its price target to $325 from $400, while maintaining an “Outperform” rating. According to Oppenheimer, the revised guidance for 2025 could represent a low point before growth resumes in 2026. They believe UnitedHealth remains a premier operator and expect the company to address current challenges over the course of 2025, mitigating any impact for 2026.