Leerink raises PT on UnitedHealth on improvement in Optum unit

Leerink Partners raises PT on health insurer UnitedHealth UNH.N to $402 from $300

Brokerage says it sees strong growth potential in the possible event that UNH's health services unit Optum's recovery improves more rapidly in 2027

UNH earlier this month said it expects about 78% of its members to be enrolled in Medicare insurance plans with high star ratings next year; and said it plans to reaffirm its 2025 adj. profit forecast of at least $16 per share

"With Stars risks diminished, and what we feel is a solid floor of $16 of EPS this year, and what should be a multi-year path forward for enterprise margins, we raise our out year estimates to reflect some growing optimism" - Leerink

Brokerage raises its 2026 adj.profit forecast to $17.34 from $17.25 per share and forecasts 2027 adj.profit per share to be $23.62 from $22.34

19 of 28 brokerages rate the stock "buy" or higher, 6 "hold" and 3 "sell" or lower; their median PT is $331

Up to last close, stock down 31.3% YTD