UBS Maintains a 'Buy' on UnitedHealth Group (UNH); Updating Estimates, Read-Thru for MCO/Hospitals
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Price: $384.85 --0%
Rating Summary:
31 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
31 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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UBS maintains a 'Buy' on UnitedHealth Group (NYSE: UNH), PT raised from $50 to $55.
UBS analyst says, "Q1 beat and raise clearly was not what market was looking for, w/concerns around “cautious view” and “overoptimistic expectations” were prevalent post strong YTD MCO performance. Most interesting was 40bps YoY improvement in comm’l MLR to 78.6% despite MLR floors, providing validating data-point that upside still remains despite floors, with our est. coming into year that most large comm’l risk plans have better than 200bps of upside due to favorable MLR regs in Nov."
"Following Q1 upside and revised 2011 consolidated / comm’l MLR expectations, w upwardly revise our FY’11 EPS to $4.25 (from $3.80) with our consolidated MLR improving by 80 bps vs. prior estimates (incl 160 bps better comm’l MLR excl Optum reclass impact). Our FY’12 EPS now goes to $4.65 (from prior $4.35)."
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 $47.81 yesterday.
UBS analyst says, "Q1 beat and raise clearly was not what market was looking for, w/concerns around “cautious view” and “overoptimistic expectations” were prevalent post strong YTD MCO performance. Most interesting was 40bps YoY improvement in comm’l MLR to 78.6% despite MLR floors, providing validating data-point that upside still remains despite floors, with our est. coming into year that most large comm’l risk plans have better than 200bps of upside due to favorable MLR regs in Nov."
"Following Q1 upside and revised 2011 consolidated / comm’l MLR expectations, w upwardly revise our FY’11 EPS to $4.25 (from $3.80) with our consolidated MLR improving by 80 bps vs. prior estimates (incl 160 bps better comm’l MLR excl Optum reclass impact). Our FY’12 EPS now goes to $4.65 (from prior $4.35)."
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 $47.81 yesterday.
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