UnitedHealth Stock Is Down Nearly 50% over the Past Year, but This 1 Analyst Is Still Betting on UNH to Outperform

Popular health insurance provider UnitedHealth Group (UNH) is down nearly 50% over the past year amid multiple issues, including a U.S. Department of Justice (DOJ) investigation and rising Medicare costs. The Centers for Medicare & Medicaid Services (CMS) proposed that Medicare Advantage payment rates would increase by 0.09% in 2027, significantly lower than the 4%-6% increase Wall Street had expected, leading to a selloff in UNH’s stock. Moreover, a subdued 2026 top line guidance has spooked investors. 

However, in this situation, Raymond James analysts upgraded UnitedHealth from “Market Perform” to “Outperform” and set a $330 price target, implying a 20.4% upside from current levels. Analyst John Ransom believes that artificial intelligence (AI) can reduce the company’s general and administrative costs and improve margin visibility in the Optum Health segment.