UPDATE: Morgan Stanley Reiterates Overweight on UnitedHealth Group, $84.00 PT

In a report published Monday, Morgan Stanley analyst Andrew Schenker reiterated Overweight on UnitedHealth Group, Inc. UNH, with a $84.00 price target. According to the report, UNH will be the first MCO to announce 4Q earnings on Jan. 16 and it is expected that the company will provide details on commercial utilization, initial exchange trends, as well as medicare advantage enrollment and funding details. “We have maintained our full-year EPS forecast of $5.49, at the high end of UNH's $5.40 to $5.50 range,” the report noted. “While UNH released its 2014 guidance of $5.50 to $5.60 at its November investor Day, we look for incremental updates on: 1) commercial pricing trends, 2) early exchange demographics, 3) Medicare Advantage enrollment, and 4) Medicare Advantage funding. Additionally, we expect commentary on 4Q utilization and cost trends in 2014.” In 4Q13 UNH's commercial MLR is expected to increase by 60 bps Y-Y to 8.34 percent. UNH closed Friday at $74.70 with shares trading down at 1.81 percent.
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Posted In: Analyst ColorReiterationAnalyst RatingsAndrew SchenkerMorgan Stanley
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