Jefferies upgrades UnitedHealth to buy, cites growth outlook

Jefferies has upgraded UnitedHealth Group (NYSE:UNH) to buy, citing a favorable growth outlook.

“The NT MLR outlook may not be crystal clear, but ‘clear enough’ in Q1/Q2 to rotate focus to a ‘25 growth outlook that is favorable and improving over the past two months,” Jefferies wrote in a note.

The investment bank said a major reason for its prior hold rating was external factors. It noted that many of these factors have been resolved or are “trending in UNH’s favor,” including the presidential election, “competitors messaging conservative MA bid postures,” and the Amedisys (AMED) deal, the Chevron ruling and the company reportedly no longer pursuing Steward’s physician network.

Jefferies raised its price target for the stock to $647.