HSBC upgrades UnitedHealth to 'hold', raises PT

HSBC upgrades UnitedHealth UNH.N to "hold" from "reduce"; lifts PT to $300 from $255

Brokerage says Medicare Advantage final rate update "buys UNH time to fix house"

Adds that the update supports margin progression plans for UNH; says membership reductions implemented during the 2026 bid cycle appear to have reset baseline profitability at a higher level

HSBC says AI initiatives and Star ratings help support margins in the near-term, but regulatory pressures remain

Adds that Q1 earnings should show if demand for healthcare is easing or getting worse, and the 2027 star rating expected in October is key to profits

Co set to report Q1 results on April 21

Up to last close, stock down ~7% YTD