UnitedHealth downgraded to "hold" - update

07.01.08 - Stifel Nicolaus

NEW YORK, January 7 (newratings.com) - Analysts at Stifel Nicolaus & Company downgrade UnitedHealth Group Inc (UNH) from "buy" to "hold."

In a research note published this morning, the analysts mention that the company?s share price appreciated by 8% in 2007 and by 20% in 4Q, outperforming the S&P index. The analysts expect the industry?s multiples to come under pressure going forward due to unavoidable modifications to the Medicare MCO payments and the upcoming Presidential elections. UnitedHealth?s fundamentals have stabilized and have resulted in the company revising its long-term annual growth guidance from at least 15% to 13%-16%, Stifel Nicolaus & Company adds.