NewsUnitedHealth "overweight," target price raised
23.04.07 - Prudential Financial
NEW YORK, April 23 (newratings.com) - Analyst David H Shove of Prudential Financial maintains his "overweight" rating on UnitedHealth Group (UNH), while raising his estimates for the company. The target price has been raised from $60 to $65.
In a research note published on April 20, the analyst mentions that the company has posted its 1Q EPS ahead of the consensus due to its broad product and customer mix. UnitedHealth?s results indicated decelerating enrollment growth across the company?s employer-based insurance lines, the analyst says. Although UnitedHealth is expected to achieve industry-growth rates for these product lines, there are substantial growth opportunities at the company?s new customer segments, Prudential Financial adds. The EPS estimates for 2007 and 2008 have been raised from $3.43 to $3.47 and from $3.93 to $4.00, respectively.