Tue Jul 15 14:50:00 UTC 2025: Here’s a summary and news article version of the provided text:
**Summary:**
Goldman Sachs considers UnitedHealth Group (UNH) a top healthcare stock. Wolfe Research maintains an “Outperform” rating but lowered its price target for UNH due to concerns about medical billing pressures, particularly in Optum Health and Medicare Advantage. They’ve also revised their 2025 earnings estimate downwards. The firm expects UnitedHealth to address these concerns and update its earnings guidance. The article also suggests considering AI stocks as potentially more lucrative investments.
**News Article:**
**UnitedHealth Faces Margin Pressures Despite Analyst Confidence**
**NEW YORK, NY** – Despite being named a top healthcare stock pick by Goldman Sachs, UnitedHealth Group (NYSE:UNH) is facing increased scrutiny from analysts regarding profitability. Wolfe Research reaffirmed its “Outperform” rating on the healthcare giant but lowered its price target from $363 to $330, citing ongoing pressures from medical billing, particularly within its Optum Health and Medicare Advantage segments.
Wolfe Research has revised its 2025 earnings estimate for UnitedHealth downwards to $18, reflecting a more cautious outlook on the company’s performance in Medicaid and health insurance exchanges. According to their analysis, UnitedHealth is experiencing lower-than-expected margins in Medicare Advantage, currently estimated at just 1%, which is below the company’s long-term average.
Investors are keenly awaiting UnitedHealth’s upcoming earnings guidance update, where the company is expected to address these concerns and provide clarity on its future earnings trajectory.
While analysts acknowledge the potential of UnitedHealth as an investment, some suggest exploring opportunities in AI stocks, citing potentially higher upside and lower downside risk.
First Piper 