Argus upgraded UnitedHealth Group (NYSE: UNH) from Hold to Buy with a price target of $170.00.

The firm thinks the company's decision to exit most of the ACA public exchange markets in 2017 will limit its exposure to unprofitable business and lead to stronger EPS growth in 2017. The firm also has a favorable view of the company’s Optum businesses.

The firm is raising adjusted EPS estimates to $7.85 from $7.80 for 2016 and to $9.00 from $8.70 for 2017.

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 $142.87 yesterday.