Credit Suisse Starts UnitedHealth Group (UNH) at Outperform

Credit Suisse initiates coverage on UnitedHealth Group (NYSE: UNH) with a Outperform rating and a price target of $133.00.

Analyst Scott Fidel commented, "We are initiating coverage of UnitedHealth with an Outperform rating and $133 target price, based on a target multiple of 15x on our 2017 Cash EPS estimate of $8.70. United enters 2016 well positioned to produce organic share gains in both the Commercial and Medicare markets in 2016-2017. While Optum typically generates most of the investor excitement around growth for UNH, we think the 2016-2017 timeframe could represent a unique opportunity for United to gain market share as it is the only one of the big five public MCOs (the others being Anthem, Aetna, CIGNA, and Humana) that does not have the regulatory overhang of attempting to consummate a transformational peer-to-peer merger. United's stock is also now the most derisked as it relates to continued public exchange pressure in 2016. While United has had an extremely challenging experience in the public exchanges in 2015, its 2016 outlook embeds significant cushion for further exchange losses next year. Finally, we expect that Optum will remain a unique growth vehicle that should support a premium valuation for UNH shares."

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 $117.61 yesterday.

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