UnitedHealth "neutral," target price reduced

03.07.08 - Credit Suisse

NEW YORK, July 3 (newratings.com) - Analysts at Credit Suisse maintain their "neutral" rating on UnitedHealth Group Inc (UNH), while reducing their estimates for the company. The target price has been reduced from $38 to $28.

In a research note published this morning, the analysts mention that the company has reduced its EPS guidance for 2008 to $2.95-$3.05, representing a 25% downward revision in the original forecast of 2008. The revised EPS guidance is the second downward revision in the past three months, the analysts add. UnitedHealth?s share price declined following the announcement due to the limited visibility into the company?s earnings for 2009, Credit Suisse says.