Wedbush Raises Price Target on UnitedHealth Group (UNH), Moderate Utilization and Flu Trends

Wedbush is reiterating its Outperform rating on shares of UnitedHealth Group (NYSE: UNH) and is raising its price target from $48 to $51 due to its belief that utilization and flu trends remain moderate.

The firm also sees a potential upside from updated March enrollment numbers and as the company improves its overhead leveraging expenses.

Wedbush is raising its Q1 EPS estimate from $0.82 to $0.86 and its FY11 from $3.83 to $3.86.

The firm reports that, "For a company of United’s scale, it’s difficult to find opportunities that create meaningful growth. We believe the opportunities ahead in the $460B services sector are large enough to drive significant earnings growth over the next few years, potentially reaching $3-4B or 30-40% of the company’s earnings"

For more ratings news on UnitedHealth Group click here and for the rating history of UnitedHealth Group click here.

Shares of UnitedHealth Group closed at $44.32 yesterday.

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