JPMorgan Lowers Price Target for UnitedHealth Group to $527, Maintains Overweight Rating
July 13, 2023
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UNITEDHEALTH ($NYSE:UNH): UnitedHealth Group Incorporated is one of the largest suppliers of healthcare products and services in the United States. They offer a variety of health insurance plans, as well as a wide array of other health services such as long-term care, pharmacy benefit management, health information technology, and consulting services. Recently, JPMorgan lowered the price target of UnitedHealth Group from $562 to $527 while still maintaining the company’s Overweight Rating.
Despite this lower price target, JPMorgan remains optimistic about UnitedHealth Group’s prospects given their strong financials and history of success. The company is expected to remain profitable over the long-term even with the current economic challenges.
Price History
The stock opened at $460.0 and closed at $463.0, gaining 0.3% from the previous closing price of 461.6. The firm believes that UnitedHealth Group’s strong fundamentals and long-term growth prospects make it a good investment. It also noted that its core health benefits business has been performing well despite pressures from the pandemic. The firm is confident that the stock will continue to appreciate in value in the long-term. 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
At GoodWhale, we have conducted a thorough analysis of UNITEDHEALTH GROUP‘s fundamentals and concluded that the company has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable to sustain future operations in times of crisis. UNITEDHEALTH GROUP demonstrated strong performance in dividend, growth, profitability, but weaker performance in asset. Based on our analysis, we classified UNITEDHEALTH GROUP as a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. This means that UNITEDHEALTH GROUP is an attractive investment opportunity for long-term and diversified investors looking for a stable source of return. Value investors may also be interested in the company’s strong dividend track record. 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
UnitedHealth Group is a leading provider of healthcare products and services in the United States. Recently, JPMorgan released an investment analysis of UnitedHealth Group, maintaining an Overweight rating but adjusting the price target from $562 to $527. Investors should consider that UnitedHealth Group’s income is primarily derived from its health-related activities, and that it offers great potential for return on investment. Although the short-term outlook may be uncertain, analysts are optimistic that the company will continue to perform strongly in the long-term.
