UnitedHealth "overweight"

12.05.06 - Prudential Financial

NEW YORK, May 12 (newratings.com) - Analyst David H Shove of Prudential Financial maintains his "overweight" rating on UnitedHealth Group (UNH). The target price is set to $60.

In a research note published yesterday, the analyst mentions that the company has forecasted the likely effect of backdated stock options in its update on the independent stock option granting investigation. UnitedHealth?s adjusted EPS growth rates for 2003, 2004, and 2005, including additional option expenses, appears robust at 35.8%, 32.6%, and 24.1%, respectively, the analysts say. The stock option expense adjustments for FY2003- FY2005 are likely to be significantly lower under the current FAS123R rule, Prudential Financial adds.