BofA Raises PT on UnitedHealth Group (UNH), Keeps a Buy Rating

UnitedHealth Group Incorporated (NYSE:UNH) is one of the Stocks That Will Make You Rich Over the Next 3 Years. UnitedHealth Group Incorporated (NYSE:UNH) has gained more than 10% over the past 30 days and is now trading close to its 52-week high. The performance has been driven by positive analyst upgrades and a proposed FTC settlement.

​Recently, on June 24, Bank of America Securities raised the firm’s price target on the stock from $450 to $475, while maintaining a Buy rating on the shares. The firm noted that the positive sentiment is based on BofA’s growing confidence in cost trends heading into Q2 earnings. BofA pointed to a higher valuation multiple and a “continuous positive outlook on trend” as key reasons behind the move.

​That said, earlier on June 17,  Leerink analyst Whit Mayo had also raised the price target on UnitedHealth from $400 to $420, while maintaining a Buy rating on the shares. The firm cited improved margins as one of the key reasons behind the increased price target. During the first quarter, the medical care ratio improved to 83.9% from 84.8% a year ago, outperforming analyst expectations of 85.7% due to disciplined pricing and favorable reserve development.

UnitedHealth Group Incorporated (NYSE:UNH) is a health care company operating in the United States and around the world. The company operates in the UnitedHealthcare, Optum Insight, Optum Health, and Optum Rx segments.

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