UnitedHealth Group (UNH): Raising PT After Solid Quarter - BofA

BofA/Merrill Lynch analyst, Kevin Fischbeck, reiterated his Buy rating on shares of UnitedHealth Group (NYSE: UNH) and raised his price target to $240 from $230 after the company reported Q3 EPS of $2.66, 4% or $0.09 above consensus. The beat was driven by lower MLR due to $310m in positive reserve development in the quarter.

The analyst stated "Overall, the quarter was solid and core growth ex the HIF should be in line with or better than UNH’s LT target of 13-16%". Regarding the model and valuation, he stated "we are raising our FY18/19 estimates to $10.76/$12.06 from $10.72/$12.02 on increased visibility into solid core growth. Our PO moves to $240, now based on 22.3x 2018E EPS (vs 21.5x previously) to
reflect the strong outlook".

For an analyst ratings summary and ratings history on UnitedHealth Group click here. For more ratings news on UnitedHealth Group click here.

Shares of UnitedHealth Group closed at $203.89 yesterday.

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