UnitedHealth "buy," price objective reduced

22.05.06 - A.G. Edwards & Sons

NEW YORK, May 22 (newratings.com) - Analyst J Paul Newsome of AG Edwards maintains his "buy" rating on UnitedHealth Group (UNH). The price objective has been reduced from $60 to $54.

In a research note published on May 19, the analyst mentions that UnitedHealth's share price is likely to decline over the near term due to investor concerns regarding the documentation requested by the IRS and subpoena sent by the US Attorney's office to the company. UnitedHealth's stock is trading below its historic low multiples and the company's current share price offers an attractive investment opportunity, given the earnings growth prospects, the analyst says.