This healthcare giant should see shares rise on successful strategy shift, Bank of America says

UnitedHealth Group is on track to continue outperforming on earnings as its corporate strategy shift begins to show signs of paying off, likely giving its shares a nice boost, according to Bank of America. The bank upgraded the health insurer to buy from neutral. It also raised its price target on shares to $450 from $420, implying 19% upside from Wednesday's close. UnitedHealth group shares are up 3% in premarket trading. "Incoming data points make it more difficult to believe that the strong Q1 was purely a function of weak flu and storms," analyst Kevin Fischbeck said Thursday in a note to clients. "We maintain a more bullish view in the near term given the potential earnings power that UNH has versus its 2026 guidance." Shares of UnitedHealth have jumped nearly 26% over the past year as the company has executed its sweeping strategy to improve its margins . Under that plan, the firm has shrunk membership, sold the U.K. arm of its tech-driven Optum healthcare delivery unit and invested in artificial intelligence, among other moves. UnitedHealth's earnings power is now 50% above its previously stated outlook for 2026 — a fact that should drive upside to shares, according to Bank of America. The company has forecasted that it could hit the low end of its target margins at all of its businesses by 2028, likely putting its earnings per share north of $26, or between 5% and 10% above the Street's consensus estimate, the analyst said. …