UnitedHealth "hold"

13.03.07 - Williams Capital

NEW YORK, March 13 (newratings.com) - Analyst Beth Senko of Williams Capital Group maintains her "hold" rating on UnitedHealth Group Inc (UNH). The target price is set to $53.

In a research note published this morning, the analyst mentions that the company has announced the acquisition of Sierra Health Systems for $46.50 per share in cash. While from a financial perspective, the deal appears sound, from a strategic perspective, it appears neutral, the analyst says. Although UnitedHealth is likely to be able to meet its EPS growth target of 15% for 2007, there is uncertainty regarding the sustainability of this growth going forward, Williams Capital adds.