The Zhitong Finance App learned that investment bank Jefferies recently upgraded its rating of United Health (UNHUS), upgraded it from “hold” to “buy”, and raised its target price to $647. This rating adjustment reflects Jefferies' optimistic expectations for UnitedHealth Group's future growth prospects.

In a detailed report, Jefferies explained that while there may be some uncertainty about the Northern Territory's minimum loss rate (MLR) outlook, the company's performance in the last two quarters has been strong enough to allow investors to turn their attention to its 2025 growth prospects. Jefferies notes that this growth outlook has not only maintained a positive trend over the past two months, but has also improved.

Jefferies also mentioned that the main reason they previously held ratings for UnitedHealth was due to external factors. However, many of these factors have already been addressed or are moving in a direction beneficial to the company. These factors include the outcome of the US presidential election, competitors' conservative stance in the Medicare Advantage (MA) bid, AMED.US (AMED.US) related deals, Chevron's related ruling, and reports that UnitedHealth is no longer pursuing the acquisition of Steward Health Care Network's doctors' network.

Furthermore, Jefferies' analysis also shows that if UnitedHealth's five-year relative price-earnings ratio is re-examined and adjusted to a level close to the S&P 500 index, the company's stock value could increase by 18%. This adjustment in expectations further strengthened Jefferies's confidence in UnitedHealth's future performance and market position.

Notably, UnitedHealth Group, Cigna (CI.US), and CIVS.US (CVS.US) have been scrutinized by the US Federal Trade Commission (FTC) due to pricing strategies for pharmacy benefit management. This regulatory review has increased the complexity of the company's operations, but it has not affected investment analysts' optimism about its long-term growth.

Additionally, the Change Healthcare division under UnitedHealth Group recently suffered a serious cyber attack, which led to the disclosure of private data of a large number of Americans. The incident not only raised concerns about data security, but also prompted the Centers for Medicare and Medicaid Services (CMS) to terminate prepayment plans for affected health insurance providers and vendors, further compounding the company's challenges.

Despite UnitedHealth's recent challenges, market confidence in its stock remains strong. Investment bank TD Cowen reiterated its “buy” rating for UnitedHealth Group, saying that although the trend of Medicare Advantage Plans and Medicaid plans continues, expectations for the company's future performance remain positive.

Meanwhile, HSBC (HSBC) upgraded UnitedHealth Group's stock rating from “hold” to “buy”. This adjustment shows market confidence in the company's future performance. At the 2024 Annual General Meeting of Shareholders, UnitedHealth also announced the election of board members and approved a cash dividend of $2.10 per share, a move that further strengthened investors' recognition of its financial soundness.

Overall, despite the multiple challenges faced by UnitedHealth Group, the market's confidence in its long-term growth and market position has not been affected. Investors and analysts generally agree that the company is capable of overcoming current challenges and continuing to play a leading role in healthcare.