Shares of UnitedHealth Group (UNH) experienced a slight recovery after a importent drop earlier in the week. The stock had plunged 18% tuesday after the health insurance provider withdrew its guidance, citing rising costs, and announced the departure of CEO Andrew Witty.

The modest rebound is attributed to supportive commentary from several analysts who maintained their ratings on the stock, despite reducing their price targets.

Analyst Perspectives

• UBS: Maintained a buy rating, stating they continue to believe the assets and identification of issues will ultimately lead to a return to growth, albeit on a longer timeline than anticipated. However, UBS lowered its price target to $400 from $525.
• Oppenheimer: Retained an outperform rating,noting that we do believe the timing of these issues should allow for margin recapture in 2026. With a long and accomplished track record, we expect UNH to get back on track, adding they would be long-term buyers. Oppenheimer’s price target also decreased to $400 from $600.
• Morgan Stanley: Stood by its overweight rating. Analysts explained that after discussions with UnitedHealth executives, we feel somewhat more confident that the guidance pull is predominantly driven by incremental cost pressure in the [Medicare Advantage] book which accelerated in April, as opposed to perhaps longer term or more structural issues across OptumHealth. They also expressed confidence in the appointment of former CEO Stephen Hemsley, stating he is the most appropriate person to step in as CEO at this juncture in light of the recent setbacks. Morgan Stanley adjusted its price target to $374 from $563.

despite the day’s gains, UnitedHealth Group shares remain significantly down. They fell to their lowest level in more than four years yesterday, and even with today’s slight gains they’re down about 38% for 2024.