This is the time of year when market professionals and investors alike pore over lists of top analyst stock picks. One big company that appeared in such a lineup was UnitedHealth (UNH 2.78%), and in the process, its shares received a price target boost. That helped lift the stock by 2% on Tuesday.
A healthy adjustment
The UnitedHealth bull in this case is Bernstein SocGen's Lance Wilkes. Tuesday morning before market open, he raised his fair value assessment of the company to $444 per share, up slightly from his preceding $440. In doing so, he maintained his outperform (read: buy) recommendation on the health insurer. He also flagged it as a top pick for 2026.
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According to reports, Wilkes is counting on UnitedHealth to continue its recovery this year and follow this up with improvements over the next few years at least. He believes it will be able to slightly surpass its trailing 10% annual revenue growth with a 12% improvement in 2026.
Generally speaking, the analyst feels that Medicaid-focused insurers, such as UnitedHealth, will be good plays in the coming months, although with more potential upside in the second half of the year.
NYSE: UNH
Key Data Points
Solvable problems
Despite its struggles over the past year or so, UnitedHealth remains a powerhouse in the health insurance space. I also think that the expiration of Obamacare subsidies won't stick, as it's politically damaging to lawmakers, and their restoration (at least to some extent) will make the company's stock that much more attractive. It's a solid investment in its sector.
