UnitedHealth (UNH) quietly sold stakes in its business units to private equity firms like KKR and Warburg Pincus, generating up to $3.3 billion in profits, causing its stock to drop more than 50% from its yearly high. Reports question the sustainability of UNH’s profit growth and potential long-term liabilities from repurchasing divested stakes.

Analysts at Wolfe Research view the current weakness in UnitedHealth shares as an opportunity for investment due to significant undervaluation, despite ongoing struggles. The company’s forward price-earnings (P/E) multiple is below historical averages, with a potential upside of 14% from a lowered price target of $330. Wall Street firms also express positivity towards UNH stock, with a consensus rating of “Moderate Buy” and a mean target of $360, indicating a potential 24% upside.

Read more at Yahoo Finance: New Reports Call UnitedHealth’s Earnings Momentum Into Question. How Should You Play UNH Stock Here?