UnitedHealth shares are down 10.9 percent this year. On Oct. 10, Jefferies analyst David Windley downgraded UnitedHealth to “hold” from “buy,” according to a research note cited by Barron’s. Mr. Windley cut price targets for six other stocks, including competitors Anthem, Cigna and Humana.
BMO Capital Markets also downgraded UnitedHealth. Political uncertainty has fueled much of the poor performance in the S&P 500’s managed healthcare subindustry group this year. The group is down 19 percent since February, while the broader S&P is up 8 percent.
“MCO sentiment turned abruptly negative a year ago and has stubbornly remained there,” Mr. Windley wrote. “The primary poison in the punch bowl, political risk, won’t likely abate for at least another nine months.”
More articles on payers:
UnitedHealthcare issues layoffs in Minnesota
Verdict for ex-BCBS of North Carolina CEO: Guilty of DWI, child abuse charges
BCBS of Texas unveils first of 10 primary care clinics
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
