02:35 PM EDT, 05/13/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We slash our 12-month target price to $285 from $379, 10.8x our 2025 EPS estimate, a discount to UNH's historical forward average due to regulatory uncertainty and unfavorable care-related trends in the Medicare Advantage (MA) business. Shares are down 16% today after UNH announced it is suspending the 2025 earnings guidance it issued last month, noting that medical expenditures are expected to be higher than anticipated. UNH also noted that care activity in Q2 is broadening to more types of benefit offerings than seen in the first quarter, and that the medical costs of many MA beneficiaries new to UnitedHealthcare remained higher than expected. At the same time, UNH announced a leadership transition, with current CEO Andrew Witty stepping down from his CEO role for personal reasons, with Stephen J. Hemsley replacing him, effective immediately. We are surprised by the pulled guidance as opposed to a prerelease with the updated outlook. However, we think UNH will be in good hands with Hemsley at the helm (UNH's prior CEO from 2006-2017).