UPDATE: Oppenheimer Upgrades UnitedHealth Group to Outperform; Valuation is Overly Pessimistic

Oppenheimer upgraded UnitedHealth Group

from Perform to Outperform and raises the price target from $63.00 to $66.00. Oppenheimer commented, "We believe that UNH's current discounted multiples appear attractive in light of the overly-pessimistic outlook regarding the impact of the ACA, and the recent pull-back related to MA rates. Furthermore, following the Q4:12 earnings conference call, we have increased confidence that FY2013 results will outperform expectations. With strong cash flow, a well-diversified portfolio and a strong track record of performance, we would be buyers of UNH." UnitedHealth Group closed at $55.21 on Wednesday.