UnitedHealth Group: Preparing For December Investor Day, Buy Reiterated

Summary:

• UnitedHealthcare navigates regulatory challenges, rising medical costs, and a cyberattack, maintaining growth and positioning for long-term success in a resilient healthcare sector.
• Despite temporary headwinds, UNH targets 13%-16% long-term earnings growth, supported by rising health expenditures and technological advancements.
• Optum Insight and Optum Health segments face short-term hurdles but are poised for future growth, enhancing UNH’s value-based care strategy.
• Valuation at 20x too-low 2025 estimates, presents a buying opportunity, with a price target of $700 by end of 2025.

Health insurance and healthcare delivery are supposed to be boring businesses right? Well, in theory, maybe, but in reality, this has been one of the most eventful landscapes I cover.

Through all the volatility of a huge cyber attack, CMS rate

Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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