Piper Defending UNH: 'We would be buyers of the stock into 3Q26'.

The analyst comments "CMS published Medicare 2027 Part C & D Star Ratings (2027 Star Ratings) last night. We illustrate ratings mix at ALHC, CVS, HUM and UNH on pages 3-5 and summarize below. Based on the newly released 2027 Star ratings, CMS' September 2026 enrollment data suggests a 24.5% 4.0+ Star mix at ALHC, a 69.3% 4.0+ Star mix at CVS, a 93.4% 4.0+ Star mix at HUM and a 66.8% 4.0+ Star mix at UNH. Largest single contract moves were ALHC's H3815 covering 75.4% of members declining from 4.0 to 3.5 Stars; and HUM's H5216 covering 33.3% of members improving from 3.5 to 4.0 Stars. We consider UNH's Star Ratings resilience impressive and underappreciated. Flat to down after hours, OW rated UNH is trading at ~14x conservative consensus CY28E adjusted EPS and is the most actionable MAO in our coverage this morning. We would be buyers of the stock into 3Q26."