UnitedHealth Might Hit New All-Time Excessive on Sturdy Q1 Earnings; Goal Value $393
Minnesota-based well being insurer UnitedHealth is anticipated to report its first-quarter earnings of $4.38 per share, which represents year-over-year progress of about 18% from $3.72 per share seen in the identical quarter a 12 months in the past.
Within the final 4 consecutive quarters, on common, the corporate has delivered an earnings shock of over 13%. The most important insurance coverage firm by Web Premiums would put up income progress of over 7% of round $68.9 billion.
UnitedHealth’s better-than-expected outcomes, which shall be introduced on Thursday, April 15, would assist the inventory hit new all-time highs.
UnitedHealth shares, which surged greater than 19% in 2020, rose over 7% to this point this 12 months.
UnitedHealth Inventory Value Forecast
9 analysts who supplied inventory rankings for UnitedHealth within the final three months forecast the typical worth in 12 months of $393.78 with a excessive forecast of $415.00 and a low forecast of $370.00.
The common worth goal represents a 4.65% enhance from the final worth of $376.28. Of these 9 analysts, eight rated “Purchase”, one rated “Maintain” whereas none rated “Promote”, in response to Tipranks.
Morgan Stanley gave the bottom goal worth of $462 with a excessive of $529 beneath a bull situation and $261 beneath the worst-case situation. The agency gave an “Obese” ranking on the well being care firm’s inventory.
A number of different analysts have additionally up to date their inventory outlook. Mizuho raised the inventory worth forecast to $394 from $380. UBS lifted the value goal to $362 from $355. Deutsche Financial institution upped the goal worth to $409 from $404. Bernstein lowered the goal worth to $409 from $413. Citigroup elevated the value goal to $408 from $390. Stephens lifted the goal worth to $390 from $380.
“UnitedHealth Group is the primary Medicare Benefit participant with ~28% market share, the quantity two Medicare PDP participant with ~20% market share, and the quantity two industrial participant with ~15% market share. United’s mannequin is enhanced through vertical integration with its OptumRx PBM platform, which is likely one of the three largest PBMs within the nation,” famous Ricky Goldwasser, fairness analyst at Morgan Stanley.
“With a big lead in breadth of companies choices and appreciable publicity to authorities companies, UnitedHealth is well-positioned for any potential modifications within the US healthcare system. A robust steadiness sheet and continued strong money era give flexibility for continued M&A.”
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