12:47 PM EDT, 10/29/2025 (MT Newswires) -- UnitedHealth Group's ( UNH ) near-term share valuation has largely priced in its prospects of 2027/2028 earnings recovery, Deutsche Bank said in a report Wednesday.

"We are not convinced 2026 will be the earnings trough for Medicaid, and we expect Optum Insight and Optum Rx to see earnings deceleration in 2026," the report said.

"The combination of a rich valuation combined with near- to medium-term earnings uncertainty forces us to the sideline."

Deutsche Bank said it is increasing its price target to $333 from $275 as it raised its multiple to 19x 2026 to reflect that earnings have bottomed and margins should expand from here.

"This multiple reflects a near-peak multiple on UNH shares despite the higher-than-usual level of uncertainty on the

EPS trajectory," it said. "But the appreciation and multiple on the shares has leapt past the earnings recovery."

Deutsche Bank downgraded the stock to hold from buy.

Price: 360.02, Change: -7.82, Percent Change: -2.13