-- UnitedHealth Group (UNH) could be at an inflection point as its operational initiatives gain traction and the rate/trend balance turn more favorable, Oppenheimer said in a note Tuesday.
The company posted strong Q1 results, with adjusted earnings and revenue both higher year over year, and raised its adjusted EPS outlook to greater than $18.25 from its prior guidance of $17.75, the brokerage said.
Early trends for UnitedHealth's segments exceeded expectations, Oppenheimer said, noting the OptumHealth division's outperformance. The Q1 results also absorbed higher operating costs with $900 million in incentive-comp and other investments, according to the note.
The brokerage raised its 2026 EPS estimate for UnitedHealth to $18.27 from $17.77 previously.
Oppenheimer increased its price target on UnitedHealth to $405 from $385, with an outperform rating.
Price: $354.41, Change: $+8.40, Percent Change: +2.43%