Bank of America Comments on Q2 for UnitedHealth Group

Bank of America has published a research report on United Health Group UNH. In the report, Bank of America wrote, "UNH reported strong Q2 earnings, with EPS of $1.16, well above our $0.97 est and the $1.04 consensus (both of which exclude Penn Treaty charges). An estimated $0.05 benefit from prior development helped, but results ex. development were still strong. Membership, MLR and SG&A all came in better than expected. More importantly, UNH raised 2011 EPS guidance to $4.15-4.25 from $3.95-4.05 (both include the $0.12-0.15 one-time Penn Treaty charge, implying new non-GAAP guidance of $4.27-4.40), although we note that guidance now includes a $0.06 benefit in the back half related to a lower tax rate." Bank of America rated UnitedHealth Group a BUY with a price target of $59.00. UnitedHealth Group closed Monday at $51.95.