UnitedHealth Faces Reduced Earnings Expectations, Valuation Compression Due to Operational, Legal Headwinds, RBC Says

Trading View
2025.05.16 14:51
portai
I'm PortAI, I can summarize articles.

UnitedHealth is facing reduced earnings expectations and valuation compression due to higher medical costs and renewed scrutiny from the Department of Justice, according to RBC Capital Markets. The firm noted that recent reports of Medicare fraud and leadership changes have negatively impacted investor confidence. RBC has lowered its price target for UnitedHealth's stock from $525 to $355, maintaining an outperform rating, citing the company's strong market position and favorable margin profile despite current challenges.