Credit Suisse Has Outperform On UnitedHealth Group

Credit Suisse is out with a research report on UnitedHealth Group UNH and it has an Outperform rating and a $72 price target on shares. In a note to clients, Credit Suisse writes, "A press release announcing the proposed acquisition of MHS by ESRX, and the decision by UNH to repatriate its customers now with MHS when the current contract expires 12/31/12, have generally positive read-through for UNH and Managed Care as we expect accretive M&A activity to pick up in the sector in part as a result of healthcare reform. Positive Read on M&A: When the shares of buyer and seller go up it sends a positive signal that the market recognizes the value creation in combinations. Managed Care is significantly more fragmented than PBMs and ripe for consolidation ahead of 2014." Shares of UNH closed at $52.15 yesterday.