UnitedHealth "outperform," target price reduced

22.10.07 - Credit Suisse

NEW YORK, October 22 (newratings.com) - Analyst G Nersessian of Credit Suisse reiterates his "outperform" rating on UnitedHealth Group (UNH), while raising his estimates for the company. The target price has been reduced from $62 to $59.

In a research note published on October 19, the analyst mentions that the company has reported mixed results for 3Q07, with EPS marginally ahead of the estimates due to a better-than-expected performance in its Medicare book segment and a lower-than-anticipated commercial MLR. The analyst adds, however, that commercial enrollment losses are likely to persist into next year. The EPS estimate for 2008 has been raised from $3.93 to $3.95.