UnitedHealth upgraded to "buy" - update

07.11.07 - UBS

NEW YORK, November 7 (newratings.com) ? Analysts at UBS upgrade UnitedHealth Group (UNH) from "neutral" to "buy," while raising their estimates for the company. The target price has been raised from $57 to $60.

In a research note published this morning, the analysts mention that the company?s share price is likely to witness an upside as UnitedHealth transitions from the difficulties it has been facing for the last 18 months. Channel checks indicate that the company has begin to improve its service metrics and the analysts expect the Medicare Advantage benefit designs to drive growth in 2008. The EPS estimate for 2008 has been raised from $3.90 to $3.95.