UnitedHealth "outperform," estimates raised

31.03.06 - Prudential Financial

NEW YORK, March 31 (newratings.com) - Analyst David H Shove of Prudential Financial reiterates his "outperform" rating on UnitedHealth Group (UNH), while raising his estimates for the company. The target price is set to $72.

In a research note published yesterday, the analyst mentions that the company's 1Q06 results are expected to be boosted by the weak 2005-2006 flu season, which would reduce it medical costs. According to the analyst, UnitedHealth's share repurchase activity in the quarter is expected to have been robust on account of the recent weakness in the company's share price and robust operating cash flows. The EPS estimates for
2006 and 2007 have been raised from $2.95 to $3.02 and from $3.47 to $3.50, respectively.