UNH: Rebound in Motion, 500 by Year End?
$UnitedHealth(UNH)$ Big money is backing the recovery. Berkshire Hathaway and other top funds have been adding to UnitedHealth, fueling confidence in the turnaround story. That institutional bid is playing a key role in the push higher.
In today’s meeting, management reaffirmed 2025 EPS guidance and highlighted that ~78% of their Medicare Advantage members are expected to be in 4-star or higher rated plans for 2026.
We saw a low of 234 back in August and have almost recovered 50% from that low within a month! Currently we are filling the gap back towards 376 which could happen in the next 2 weeks. If this momentum holds up, breaking 400 by end of year is definitely back in the picture.
Why UnitedHealth Still Stands Out:
Largest player in Medicare Advantage with unmatched scale and diversified Optum operations
Strong cash flows and balance sheet to weather near-term cost volatility
Backing from big names like Buffett reinforces institutional confidence
Valuation:
Multiple models (DCF, intrinsic, and peer comps) put fair value well above current levels. Even conservative scenarios converge around $400–$450
Catalysts Driving the Move:
Berkshire & Funds Buying: Major institutional ownership driving sentiment higher
Medicare Advantage Update: 78% in 4-star+ plans by 2026 = higher reimbursement
Earnings Stability: Reaffirmed 2025 EPS guidance (~$16) despite recent headwinds
My Price Target for $UNH is $450 by Year End!
Not Financial Advice, Just My Opinion
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