JP Morgan Analyst Rates UnitedHealth Group as Overweight, Lowers Price Target
June 1, 2023
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UNITEDHEALTH ($NYSE:UNH): On May 30, 2023, Lisa Gill, an analyst from JP Morgan, issued her most recent report on UnitedHealth Group (UNH). The report gave UNH an “overweight” rating and lowered its price target. UnitedHealth Group is one of the largest healthcare companies in the world. The company also offers technology-driven services and advanced data analytics, all with the aim of improving the health outcomes of its customers. Gill believes that UNH’s strong market presence and competitive advantages will support a successful long-term growth path. She praised UnitedHealth Group’s focus on innovation and staying ahead of the changing healthcare landscape. The analyst also commented on the company’s broad geographic reach and ability to deliver value for its customers.
However, she maintained her “overweight” rating, suggesting that investors should buy the stock. With the revised price target, UNH remains one of the top healthcare stocks to watch in the coming months.
Market Price
The news sent UNITEDHEALTH GROUP shares up 1.5% from the previous closing price of $479.8, with the stock opening at $478.1 and closing at $487.2. This positive development at the company indicates a strong future outlook, and investors are likely to benefit from the analyst’s insight. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unitedhealth Group. More…
| Total Revenues | Net Income | Net Margin |
| 333.48k | 20.7k | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unitedhealth Group. More…
| Operations | Investing | Financing |
| 37.21k | -35.82k | 15.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unitedhealth Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 283.68k | 193.06k | 79.84 |
Key Ratios Snapshot
Some of the financial key ratios for Unitedhealth Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 14.6% | 8.9% |
| FCF Margin | ROE | ROA |
| 10.3% | 22.6% | 6.5% |
Analysis
As GoodWhale, our analysis of UNITEDHEALTH GROUP‘s financials has revealed that the company has achieved stable and high revenue or earning growth due to its strong competitive advantage. This leads us to classify them as a ‘gorilla’ type of company. We can also see that UNITEDHEALTH GROUP is particularly strong in dividend, growth, profitability, and weak in asset. As such, investors interested in taking advantage of the company’s financial stability may find this to be an intriguing offering. Furthermore, with a health score of 8/10 with regard to its cashflows and debt, UNITEDHEALTH GROUP is well-placed to safely ride out any crisis without the risk of bankruptcy. This makes it an even more attractive option for long-term investors. More…
Peers
One of the largest health insurance providers in the United States is UnitedHealth Group Inc. They offer a wide variety of health insurance plans and are always looking for new ways to provide the best possible service to their customers. Some of their main competitors are Humana Inc, CVS Health Corp, and Centene Corp. Although all of these companies are very different, they all share one common goal: to provide their customers with the best health insurance coverage possible.
– Humana Inc ($NYSE:HUM)
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company’s revenue was US$54.4 billion in 2018.
– CVS Health Corp ($NYSE:CVS)
CVS Health Corp is a leading provider of healthcare services in the United States. The company has a market capitalization of $120.33 billion as of 2022 and a return on equity of 10.96%. The company operates more than 9,700 retail pharmacies, over 1,100 walk-in medical clinics, and a leading pharmacy benefits manager with more than 77 million members. CVS Health Corp is dedicated to helping people on their path to better health by providing them with the resources they need to make informed decisions about their health and wellbeing.
– Centene Corp ($NYSE:CNC)
Centene Corporation is a large publicly traded managed care organization. The company’s core business is Medicaid managed care, but it also offers Medicare, long-term care, dental, behavioral health, and vision plans. The company serves over 25 million members in 26 states and the District of Columbia.
Centene’s market cap of $43.28 billion and ROE of 6.97% indicate that it is a large and successful company. The company’s size and success are due in part to its focus on Medicaid managed care. Medicaid is a government health insurance program for low-income Americans. Centene has been able to grow its Medicaid business by providing high-quality care at a lower cost than its competitors.
Summary
JP Morgan analyst Lisa Gill has given UnitedHealth Group an Overweight rating with a lowered price target. The report highlights the company’s strong performance and cost savings initiatives. UNH is expected to benefit from the growth in demand for healthcare services in the US and other markets.
The report also notes the improved operating margin trends, which is seen as a positive sign for investors. Overall, the rating and lowered price target suggest that UNH is well positioned for future growth.
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