Oppenheimer Thinks UnitedHealth’s Stock is Going to Recover

By Jason Carr

In a report released today, Michael Wiederhorn from Oppenheimer maintained a Buy rating on UnitedHealth (UNHResearch Report), with a price target of $305. The company’s shares closed yesterday at $230.20, close to its 52-week low of $220.77.

Wiederhorn said:

“UNH reported 1Q:19 adjusted EPS of $3.73 (GAAP: $3.54) topping OPCO/Street estimates of $3.61/$3/59. Adj. results exclude $0.19/shr of amortization. Results were strong across the board with UnitedHealthcare accounting for the majority of the beat, driven by ~60 bps of combined margin outperformance attributable to both the MCR and operating cost ratio. Meanwhile, Optum results slightly topped expectations, driven by the top line, as margins are expected to be largely stable in 2019 (Q1: +10 bps, OptumRx -20 bps). Due to the strong results, UNH tweaked up FY2019 EPS guidance to $14.50-$14.75 vs. $14.40-$14.70. UNH produced very strong results this quarter, which should help alleviate some concerns from health care investors.”

According to TipRanks.com, Wiederhorn is a 5-star analyst with an average return of 14.0% and a 64.8% success rate. Wiederhorn covers the Services sector, focusing on stocks such as Cross Country Healthcare, Addus Homecare Corp, and Community Health.

UnitedHealth has an analyst consensus of Strong Buy, with a price target consensus of $301, which is a 30.8% upside from current levels. In a report released today, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $310 price target.

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Based on UnitedHealth’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $58.42 billion and net profit of $3.04 billion. In comparison, last year the company earned revenue of $55.19 billion and had a net profit of $2.84 billion.

Based on the recent corporate insider activity of 176 insiders, corporate insider sentiment is negative on the stock. Last month, Richard Burke, a Director at UNH bought 5,000 shares for a total of $103,400.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.