Analysts Raise Price Target For UnitedHealth After Q2 Earnings Beat Expectations

UnitedHealth Group Inc UNH reported Q2 revenues of $71.3 billion, up 15% Y/Y and beating the consensus of $69.5 billion, and adjusted EPS came in at $4.70, surpassing the consensus of $4.43.

But net income declined from $7.12 posted a year ago fell due to higher medical expenses, as patients sought medical care they had avoided when the pandemic was raging 12 months earlier.

Analyst Price Target Raise: Truist raised the target to $500 from $480 and with Buy rating unchanged following strong trends across the platform, a lower MLR, sizable free cash flow, and raised guidance. 

Barclays increased the price target from $435 to $465 and kept an Overweight rating. 

Key takeaways from the Q2 conference call are overall care activity continued to trend "toward baseline or normalized levels" and the Company's expectation that overall medical costs in the 2H will be essentially flat with the pre-Covid baseline in the second half of 2019, Valiquette tells investors in a research note.

The target price at Raymond James increased to $515 from $435 with a Strong Buy rating. Q2 results exceeded the analyst's expectations across all business segments; Ransom tells investors in a research note.

Deutsche Bank raised the target on UnitedHealth to $421 from $418 and kept a Buy rating.

Stephens, too, raised the price target to $460 from $440, with an Overweight rating. 

The Company's adjusted EPS outlook for the second half "maintains a healthy level of conservatism," said the analyst, who sees a better overall backdrop.

Credit Suisse increased target price to $$462 from $430 and maintained Outperform rating. It notes monthly utilization progression in Q2 similar in commercial & medicare business.

The Company sees 2H21 utilization at 'more normal to higher levels, citing pent-up demand & higher acuity.

Price Action: UNH shares are up 0.33% at $421.42 during the market session on the last check Friday.