UnitedHealth (NYSE:UNH) stock is on the move Monday after analysts at UBS upgraded the healthcare company’s shares.
UBS analyst A.J. Rice is behind today’s news as the firm increases shares of UNH stock from a “neutral” rating to a “buy” rating. To put that in perspective, the analyst consensus rating for UNH shares is a moderate buy based on 17 opinions.
To go along with that upgrade, Rice also increased the price target for UNH stock from $520 per share to $640. That represents a possible upside of about 19% for the stock. It’s also bullish next to the analyst consensus price prediction of $579.24 per share.
What’s Behind the UNH Stock Upgrade?
Here’s what Rice said about UnitedHealth in a note to clients obtained by CNBC:
“We believe that the strong Q3 release from UNH is a clearing event that should pave the way for improved valuation for the stock. The company is undertaking various cost cutting initiatives to ensure the business is well positioned to handle growth going forward. Also in light of the tougher [Medicare Advantage] rate environment for 2024, these cost and investment actions in Optum Health should provide some mitigation against rate pressures.”
UNH stock is slipping slightly on Monday morning despite the upgrade.
Investors looking for even more of the hottest stock market news for today are in the right place!
We’re offering up all of the biggest stock market news that traders need to know about on Monday! A few examples include what’s happening with shares of Lululemon Athletica (NASDAQ:LULU) stock, Rite Aid (NYSE:RAD) stock and more. You can catch up on all of these matters at the links below!
Monday Stock Market News
- LULU Stock Alert: What to Know as Lululemon Joins S&P 500
- RAD Stock Sinks as Rite Aid Files for Ch. 11 Bankruptcy
- RAD Stock: Is Rite Aid About to Become the Next Meme Stock?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
