BofA Upgrades UnitedHealth to Buy, Raises Target to $450

Bank of America (BofA) upgraded UnitedHealth Group (UNH) to Buy from Neutral and raised its price target to $450 from $420 per share in a note on Thursday, analyst Kevin Fischbeck said. The upgrade is based on improving medical cost trends and a favorable setup heading into second-quarter earnings.

Rating Change

• Previous Rating: Neutral
• New Rating: Buy
• Previous Price Target: $420
• New Price Target: $450

Analyst Rationale

Fischbeck noted that Q2 trend data indicates improving medical cost trends, which sets up a strong risk/reward for the stock. The current setup is favorable ahead of the Q2 earnings release.

Context

No other analyst ratings were mentioned in the note. UnitedHealth shares (UNH) are currently trading near $430, up slightly year-to-date.

Conclusion

The upgrade reflects analyst optimism over improving medical costs, but investors should watch actual Q2 results to confirm the trend.