UnitedHealth "overweight," target price reduced

24.04.08 - Lehman Brothers

NEW YORK, April 24 (newratings.com) - Analyst Joshua R Raskin of Lehman Brothers maintains his "overweight" rating on UnitedHealth Group (UNH), while reducing his estimates for the company. The target price has been reduced from $46 to $42.

In a research note published yesterday, the analyst mentions that the company has posted its 1Q08 earnings short of the consensus. The quality of UnitedHealth?s cash flows and reserves in the quarter was weak and the company?s commercial-risk enrolment and CFFO declined, the analyst says. The reduction in the company?s full-year guidance was more than expected, the analyst adds. The EPS estimates for 2008 and 2009 have been reduced from $3.85 to $3.55 and from $4.20 to $3.90, respectively.