Wedbush Raises Price Target on UnitedHealth Group (UNH) Due to Lower Than Projected Utilization
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Price: $401.73 +0.67%
Rating Summary:
31 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
31 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating its Outperform rating on shares of UnitedHealth Group (NYSE: UNH) and is raising its price target from $54 to $57.
The firm is also raising its Q2 and 2011 EPS estimates from $0.90 and $4.21 to $0.96 and $4.28. The increased estimates are due the firms proprietary consumer and physician surveys which hint that utilization remains low.
The potential in the $460 billion HC services sector is large enough to drive solid earnings growth over the next few years. The firm forecasts the that the opportunities may contribute $3-$4 billion or 30-40 percent of the company's earnings, up from $1.6 billion.
Wedbush is anticipating on hearing something on the potential CA prior approval bill and a potential increase in rate scrutiny in other states.
An analyst at Wedbush comments, "We see upside potential from moderate utilization trends, supported by our recent consumer and provider surveys, and strong 2011 Medicare sales. We believe the impact of healthcare reform is more manageable than it originally appeared and feel more comfortable with the pricing strategy United is taking in light of healthcare reform."
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 $51.73 yesterday.
The firm is also raising its Q2 and 2011 EPS estimates from $0.90 and $4.21 to $0.96 and $4.28. The increased estimates are due the firms proprietary consumer and physician surveys which hint that utilization remains low.
The potential in the $460 billion HC services sector is large enough to drive solid earnings growth over the next few years. The firm forecasts the that the opportunities may contribute $3-$4 billion or 30-40 percent of the company's earnings, up from $1.6 billion.
Wedbush is anticipating on hearing something on the potential CA prior approval bill and a potential increase in rate scrutiny in other states.
An analyst at Wedbush comments, "We see upside potential from moderate utilization trends, supported by our recent consumer and provider surveys, and strong 2011 Medicare sales. We believe the impact of healthcare reform is more manageable than it originally appeared and feel more comfortable with the pricing strategy United is taking in light of healthcare reform."
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 $51.73 yesterday.
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