Discipline Paying Off

Research evidence excerpt

Discipline Paying Off

Idea

July 17, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMUnitedHealth Group Inc | North America Erin Wright

Equity Analyst

Discipline Paying Off Erin.Wright1@morganstanley.comDerek Gross +1 212 761-6137

Research Associate

What’s Changed Derek.Gross@morganstanley.com +1 212 761-2455

Michelle Foley

UnitedHealth Group Inc (UNH.N) From To Research Associate

Price Target $468.00 $529.00 Michelle.Foley@morganstanley.com +1 212 761-4056

Linda Bolduc

UNH’s 2Q upside and higher 2026 targets validate its disciplined EquityLinda.Bolduc@morganstanley.comAnalyst +1 617 856-8009

strategy and establish a stronger base for future growth. Better Craig Hettenbach

2H visibility and improving MA/Optum Health support our EquityCraig.Hettenbach@morganstanley.comAnalyst +1 212 761-6435

incrementally positive view, though commercial cost pressure is Jialin Jin

an emerging risk. Reiterate Top Pick. Jay.Jin@morganstanley.com +1 212 761-3913

UnitedHealth Group Inc (UNH.N, UNH UN)

Key Takeaways Top Pick

UNH delivered a needed 2Q beat & raise. New '26 EPS is baseline for future Healthcare Facilities & Managed Care | United States of

America

growth, reflecting confidence in underlying fundamentals & trajectory (13-16% LT

EPS) Stock Rating Overweight

Industry View In-Line

Favorable '26 MLR guidance revision, though cost commentary pointed less to Price target $529.00

Shr price, close (Jul 16, 2026) $423.38

broad-based trend turnaround. Commercial pressure a caveat. Mkt cap, curr (mm) $377,523

52-Week Range $461.62-234.65

Optum Health EBIT and guidance raise exceeded expectations as UNH positions

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

for margin improvement in 2027 where it reaffirmed reaching its LT target in

EPS ($)** 16.35 19.82 22.54 26.90

2028.