Why UnitedHealth Group Stock Is Rising

UnitedHealth Group Incorporated UNH shares are moving higher Tuesday. Bernstein upgraded the stock and raised the price target.

What To Know: Bernstein analyst Lance Wilkes upgraded UnitedHealth Group from Market Perform to Outperform and raised the price target from $595 to $603.

The analyst drew attention to the company's solid second quarter results posted Friday morning, with earnings per share coming in 3% higher than expected and guidance being raised.

The analyst mentioned that the market has factored in the uncertainty associated with medical costs, going on to say that UNH is "a best-in-class MCO and VBC company" and touting the company's appealing valuation.

Wilkes predicts a hardening pricing market in 2024 due to rising utilization.

Furthermore, he predicted long term growth for the company attributed to a shift to government managed care and value based care, with long term opportunities in health system enablement including AI/care automation.

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UNH Price Action: Shares of UNH were up 3.42% at $500.62 at the time of publication, according to Benzinga Pro.

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