UnitedHealth Group (UNH) could issue "conservative" earnings guidance for 2025 that falls short of consensus expectations, potentially below $20 per share, Morgan Stanley analysts said in an earnings preview note Monday.
The health insurance provider, which cut its full-year earnings outlook then pulled the guidance in May, could restore its outlook but set it "prudently" lower than $20.94 per share, which Morgan Stanley analysts are forecasting for 2025. Analysts polled by FactSet are expecting full-year EPS of $21.56.
Before pulling its full-year earnings outlook, the company said in April it was expecting adjusted earnings of $26 to $26.5 per share, down from a prior outlook of $29.5 to $30 per share.
UnitedHealth is scheduled to report Q2 earnings on July 29.
Morgan Stanley cut its price target to $342 from $374, but reiterated an overweight rating on the stock.