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UHS's Medicaid revenue risk lowers with new Democratic power; stock rated Strong Buy with $245 target.

Analyst Insights
12 Nov 2026, 13:44 WIB
Seeking Alpha
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Bullish
UHS's Medicaid revenue risk lowers with new Democratic power; stock rated Strong Buy with $245 target.

Starting January 2027, new Medicaid cuts require Democratic votes, reducing policy risk for UHS's $1.58 billion supplemental Medicaid revenue in 2026. Democrats gained control in key states like Texas and Nevada, where UHS earns half of that revenue, and a court ruling eased work-requirement risks for behavioral patients. Medicaid cuts from the One Big Beautiful Bill Act will phase in from late 2027 to 2032, but UHS's share buybacks should offset earnings impact. Currently trading at about 8x earnings, UHS is expected to re-rate to around 11x in 2027, making it a Strong Buy with a $245 price target and potential upside to $290.

Universal Health Services is highlighted with a $1.58 billion supplemental Medicaid revenue in 2026. For readers following the health sector, here is Pluang's market snapshot as of Nov 12, 2026 18:11 WIB: out of 150 priced US health stocks, 84 rose and 57 fell. Notable movers include Inovio Pharmaceuticals Inc (INO) at USD 1.43 with a 3.05% decline and typical hold time of 41 days, Maravai LifeSciences Holdings Inc. Class A (MRVI) at USD 7.93 with a 2.99% gain and 18 days hold, and Eli Lilly And Co (LLY) at USD 1,476.03 with a 2.66% gain and 94 days hold. Pluang order activity shows a majority selling for these stocks.

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