UnitedHealth initiated with "outperform"

08.11.06 - Credit Suisse

NEW YORK, November 8 (newratings.com) - Analyst G Nersessian of Credit Suisse initiates coverage of UnitedHealth Group (UNH) with an "outperform" rating. The target price is set to $56.

In a research note published yesterday, the analyst mentions that the company is expected to continue to retain its strategy of improving its healthcare delivery system's cost and quality, despite the change in leadership. UnitedHealth's fundamentals and EPS growth are expected to be supported from FY07 onwards by potential share repurchases and acquisitions, the analyst says. The company appears uniquely poised to withstand a cyclical decline in the commercial business, Credit Suisse adds.