UnitedHealth Has A Large Runway Of Growth, 'Very Attractive Valuation,' Says Bullish Analyst

UnitedHealth Group Inc UNH announced its second-quarter earnings on Friday, lending upside to shares.

The current valuation of the stock does not reflect the company’s long-term growth prospects, according to Bernstein.

The UnitedHealth Analyst: Lance Wilkes upgraded the rating on UnitedHealth from Market-Perform to Outperform, while raising the price target from $595 to $603.

The UnitedHealth Thesis: The company reported “solid” results for the second quarter, Wilkes said in the upgrade note.

Check out other analyst stock ratings.

“We believe expectations were negative regarding rising medical costs and UNH in line print on MLR, their comments on stable costs, and raising of the guide led to the stock closing 7% up on Friday,” the analyst wrote.

“We believe UNH is a best-in-class MCO and VBC company, and current valuation offers a unique opportunity to buy a piece of a business with a large runway of growth in front of it at very attractive valuation,” he added.

UNH Price Action: Shares of UnitedHealth had risen by 3.72% to $502.10 at the time of publication Tuesday.

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