UnitedHealth Group Highlights Technology, Areas Targeted For Improvement At Investor Day

UnitedHealth Group Inc. UNH hosted an investor day Tuesday highlighting the company’s growth, special technologies and 2019 guidance.

The Analysts

• Morgan Stanley analyst Zack Sopcak reiterated an Overweight rating on UnitedHealth and $308 price target.
• Wells Fargo analyst Peter Costa assigned an Outperform rating and $297 price target.
• Raymond James analyst Michael J. Baker reiterated a Strong Buy rating and $310 price target.

Optum Technologies

During the annual investor day, UnitedHealth reported on technologies and their patient outcomes.

OptumIQ, PreCheck MyScript, BriovaRx, Avella and Rally were discussed,Wells Fargo's Costa said in a note. 

“Combined, these technologies engage with consumers directly about their health and well-being, manage specific conditions and provide or better facilitate local health care delivery. We believe the preponderance of technological innovation keeps UNH ahead of its peers," the analyst said. 

Performance Initiatives

The health insurer additionally targeted several business segments for improvement. Temporary Assistance for Needy Families, net promoter scores and National Accounts were among the topics, said Raymond James' Baker.

“The company will aggressively pursue improvement in these areas with a focus on total cost management and the continued buildout of tech-enabled, consumer-focused tools. Management announced the launch of a beta form of its individual health record  initiative with some ACO partners, marking the beginning of an ambitious path toward personalized, portable records that, with the help of successful provider coordination and artificial intelligence, can be used to improve outcomes.”

United's consumer digital health platform Rally is a "more mature" initiative with 21 million users, according to Raymond James. The platform offers advice on next steps, priced alternatives and payments to incentivize healthy, cost-conscious behavior. 

Growth Outlook

Based on-near term data, United will likely maintain a long term growth rate between 13 and 16 percent, said Morgan Stanley's Sopcak.

“In the midst of rapidly evolving technology opportunities and competitive change, we see the prudence in heightened investment at the expense of maximizing growth in the near term to set the stage for the next decade and beyond.”

Price Action

UnitedHealth Group shares were up 2.59 percent at $278.18 at the time of publication Wednesday. 

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