UPDATE: Cantor Fitzgerald Initiates UnitedHealth Group with Buy, $70 PT on Outperformance

Cantor Fitzgerald initiates its coverage on UnitedHealth Group UNH with a Buy rating and a $70 price target. Cantor Fitzgerald comments, "Despite tough comparisons because of large favorable development in 2011, UnitedHealth continues to outperform the industry. Utilization has probably bottomed, but we expect higher loss ratios to be offset by operating efficiency and growth of the services businesses. Enrollment should help, because while we expect commercial to be flat, national accounts should grow as the market consolidates, and the company is well positioned in Medicare and Medicaid, with a national footprint, consumer focus, and a provider-friendly approach to managed care. We expect UnitedHealth's earnings growth to be among the best in the group in 2012 and 2013." UNH closed at $59.42 on Tuesday.