NewsUnitedHealth "outperform," target price raised
08.03.07 - Credit Suisse
NEW YORK, March 8 (newratings.com) - Analyst G Nersessian of Credit Suisse reiterates his "outperform" rating on UnitedHealth Group Inc (UNH), while raising his estimates for the company. The target price has been raised from $60 to $62.
In a research note published yesterday, the analyst mentions that the company has filed its delinquent 2006 SEC reports, which is a significant step in resolving the option backdating scandal. UnitedHealth has indicated that it would incur a cash charge of $100 million due to additional corporate income taxes, associated with the disallowance of stock-based compensation expenses as tax deduction. The EPS estimate for 2008 has been raised from $3.86 to $3.93 to reflect higher-than-expected share buybacks.