Goldman Sachs Names UnitedHealth (UNH) to Conviction List, Keeps $435 Price Target

UnitedHealth Group Incorporated (NYSE:UNH) is included among the 10 Best Blue Chip Stocks to Invest in According to Billionaires.

On May 1, Goldman Sachs added UnitedHealth Group Incorporated (NYSE:UNH) to its U.S. Conviction List as part of its monthly update. The firm believes the company is nearing the bottom of its underwriting cycle for Medicare Advantage, which makes up about 40% of its business. Goldman maintains a Buy rating on the shares with a $435 price target.

On April 21, Raymond James analyst John Ransom raised the firm’s price recommendation on UNH to $370 from $330. It reiterated an Outperform rating on the shares. The company reported better-than-expected Q1 results, with adjusted EBIT coming in $790M above estimates and a core underlying beat of about $1.19B. This translates to roughly $1.05 of EPS upside after adjustments, the analyst tells investors in a research note. Despite the strong quarter, management appears to have absorbed much of the upside through higher costs. Guidance is seen as conservative. The firm noted that the market may be looking for a stronger earnings baseline later in the year, even as the forward multiple has already moved up from recent lows.

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which covers Employer & Individual, Medicare & Retirement, and Community & State.

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