UnitedHealth Rally Gains Support as Jefferies Lifts Target Ahead of Oct. 28 Update

Overview

• Jefferies raised its UnitedHealth price target to $409 on Oct. 17 while keeping a Buy rating, citing scope for margin improvement.
• The firm projects roughly 100 basis points of medical loss ratio improvement in Medicare Advantage in 2026 and expects lower segment volatility after repricing and commission changes.
• Jefferies forecasts Optum Health margins of 5.7% by 2027, about 210 basis points above current Street estimates, supported by expansion in value‑based care lives with affiliated physicians.
• UnitedHealth shares have rebounded more than 50% from 52‑week lows as investors reassess long‑term earnings power following a turbulent year.
• Management has highlighted AI‑driven analytics and automation within Optum to streamline claims and rein in costs, with regulatory investigations and elevated medical expenses still on watch lists.