dailyloe.com – UBS has reaffirmed a Buy rating on UnitedHealth Group Incorporated, setting a price target of $410 per share. The financial firm’s analysis followed a recent meeting with the company’s management team. This outlook positions UNH as a notable stock for investor consideration in 2026.
Management confirmed its projected 2026 earnings per share seasonality split. They expect 65% of EPS in the first half and 35% in the second half. This pattern implies stronger early-year earnings, aligning with historical Medicare Advantage trends.
The medical loss ratio slope across quarters is also expected to improve. It is projected to be less steep than the previous year. In 2025, the Q1 to Q4 MLR spread was approximately 7.5% due to Part D factors.
Company leadership expressed comfort with current first-quarter MLR consensus estimates. These estimates fall in the low-to-mid 85% range. UBS noted this suggests minimal near-term downside risk versus market expectations.
UBS highlighted expectations for UnitedHealth’s Optum segments. Both Optum Insight and OptumRx are forecasted to show back-end-loaded financial performance. Optum Insight’s results are skewed toward the second half of the year.
This seasonality reflects heavier investment spending in the first half. Conversely, OptumRx is expected to see more upfront investments early on. These investments relate to onboarding new client contracts.
UnitedHealth Group is a diversified healthcare and well-being company. Its operations span insurance, care delivery, and pharmacy benefits management. The company also provides health software and data analytics services.
Its core franchises are UnitedHealthcare and Optum. These units support coordinated care and cost management initiatives. They also deliver data-driven services across the healthcare ecosystem.[]
Source: Yahoo Finance
