UnitedHealth (UNH) PT Raised to $155 at FBR Capital
FBR Capital analyst Steven Halper reiterating an Outperform rating and lifted his price target on UnitedHealth Group (NYSE: UNH) to $155.00 (from $145.00) following Q2 results, which were "solid across the board."
Halper commented, "Revenue was in line with our estimate at $45.5 billion, and adjusted EPS of $1.96 were nicely ahead of our estimate and the consensus. There appears to be some concern regarding elevated medical loss ratio, which was above our estimate. The company recorded additional losses for individual exchange products and had negative reserve development. We firmly believe that medical cost trend in its current/core business is tracking along nicely. Optum remains a strong contributor and key differentiator for the company. We are raising our price target from $145 to $155. As other publicly traded managed care companies are tied up with pending mergers, UNH remains our only large-cap Outperform-rated stock."
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Shares of UnitedHealth Group closed at $140.75 yesterday.