UPDATE: Jefferies Reiterates Buy, Raises PT to $60 on UnitedHealth

Jefferies maintains its Buy rating on UnitedHealth Group Inc.

and raises its price target to $60 from $58 following an upbeat investor day showing long term growth opportunities. Jefferies says, “2013 is a "Break-Out" Year. Management called '13 the break-out year for Optum when OptumRx investments diminish and Medco comes on-line. We are more confident in UNH's accelerating EPS growth toward its LT target of 13-16%. UNH is positioned to address a growing MA population, Medicaid RFPs, dual eligibles ($300bn), and the exchanges ($60bn in 2014).” In a statement provided to Benzinga for clarification, the reference of Medco coming "on-line" is defined as Medco's pharmacy benefit services being brought in-house. As quoted from

from the Associated Press, "UnitedHealth will spend $115 million on its OptumRX business next year, as it prepares to handle pharmacy benefits it used to give to Medco Health Solutions, Inc." UNH closed at $45.88 per share on Tuesday.