TD Cowen Downgrades UnitedHealth Amid Rising Risk and Regulatory Uncertainty

TD Cowen has downgraded UnitedHealth's stock rating from Buy to Hold, lowering the price target to $308 from $520 due to elevated risk scores under the v28 model and regulatory complexities in Medicare Advantage, commercial, and Medicaid sectors. UBS has also noted these ongoing challenges, while a criminal investigation reported by the Wall Street Journal adds to the uncertainty. Meanwhile, the broader analyst consensus remains generally positive, with an average price target of $434.04 and an Outperform rating from 28 brokerage firms, reflecting sector expectations despite the risks identified by TD Cowen. GuruFocus projects a potential fair value for UnitedHealth shares at $703.91 in one year, indicating significant long-term upside against current pricing, based on historical valuation multiples and growth estimates.