Jefferies Maintains Buy on UnitedHealth Group After CEO Meeting, Expected to Gain Share

Jefferies & Company has published a research report on UnitedHealth Group (NYSE: UNH) commenting on the company's forecast into 2012 after meeting with CEOs.

In the report, Jefferies writes, "Management believes 2012 should stack up to be another positive year. Membership trends are attractive, with specific call-outs in Medicare Adv and Commercial fee-based. Increasingly effective care management models are bending trend by 200 bps or more, according to the company, enabling it to defend against margin pressures from a combination of government rates, Commercial competition, MLR floors, and rate review. Required skill sets continue to trend toward clinical management and consumer engagement. UNH's IT spend for maintenance and new applications (~$3B) exceeds the total operating cost base for most plans. Whether organically through a more IT-rich product or through acquisition, UNH expects to gain share, including particular enthusiasm for share gains in Exchanges."

Jefferies maintains its Buy rating and $60 price target on UnitedHealth Group, which closed yesterday at $51.49.