By Nate Wolf

UnitedHealth Group got a boost this week from its better-than-expected quarterly results, but it may be too late to buy the dip in the struggling insurance stock, one investment bank says.

Analysts at Deutsche Bank downgraded UnitedHealth stock to Hold from Buy in a research note Wednesday, arguing that shares have now priced in a smooth long-term recovery that may or may not come. The firm also lifted its price target for UnitedHealth to $333 from $275.

Shares fell 3.1% to $356.55 a share on Wednesday.

UnitedHealth suffered a historic selloff in April when it slashed financial guidance. The company then withdrew guidance entirely in May and announced that its then-CEO, Andrew Witty, had resigned.

Shares remain down almost 30% in 2025, but they have recovered in the second half of the year. The stock has climbed 45% since the start of August due in large part to Berkshire Hathaway increasing its stake in the insurer.

Investors looking to follow Berkshire chair Warren Buffett's lead may want to think twice, according to Deutsche Bank. Meeting Wall Street's current valuation will require a series of beat-and-raise quarters over multiple years, the firm said.

"We believe investors would have to see significant earnings outperformance versus our estimates and consensus to drive meaningful outperformance of UNH shares over the near to medium term," wrote analyst George Hill.

UnitedHealth's approach of reducing provider networks, slashing member numbers, and increasing rates will help the company widen its shrinking margins, Deutsche Bank said. But worsening cost trends, unanticipated investments, and pricier-than-expected mitigation efforts from moving to its new coding standard, called V28, remain potential roadblocks.

Deutsche Bank boosted its 2025 revenue estimate after Tuesday's earnings print. The firm also raised its earnings-per-share forecast for 2026, noting that 2025 was likely a trough for earnings. Projecting further out, however, is difficult considering the risk factors that helped tank UnitedHealth's stock in the first place.

"While 2025 earnings feel largely derisked at this point, we still have concerns about 2026 and 2027 growth," Hill wrote.

Deutsche Bank notwithstanding, Wall Street remains largely bullish on UnitedHealth. Nineteen of 30 analysts rate the stock a Buy or equivalent, while eight rate it a Hold, and three have issued Sell ratings.

Write to Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 29, 2025 14:17 ET (18:17 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.