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Friday, 03/31/2023 2:56:51 PM

Friday, March 31, 2023 2:56:51 PM

Post# of 447
UnitedHealth Group (UNH) - >>> Primarily a provider of health insurance policies, and in partnership with employers, providers, and governments, it makes healthcare accessible to more than 151 million people.

The scale of this business is visible in the company’s earnings reports. In the last reported quarter, 4Q22, UnitedHealth showed a quarterly top line of $82.8 billion, up 12% year-over-year and some $270 million ahead of expectations. At the bottom line, the company had a non-GAAP EPS of $5.34, up 19% y/y, and above consensus estimate of $5.17. For the full year, UnitedHealth had revenues of $324 billion, for a 13% y/y gain. The firm’s full-year adjusted net earnings came to $22.19 per share.

Looking ahead, UNH is guiding toward $357 billion to $360 billion in revenues for 2023, and is projecting to bring in $24.40 to $24.90 in adjusted net EPS.

Covering this stock for Morgan Stanley, 5-star analyst Erin Wright lays out a simple case for investors to consider, saying, “In health insurance, scale is king and UNH is the largest national insurer with top-three position in almost all insurance end markets. We believe the resiliency of UNH’s diversified businesses will generate long-term double-digit earnings growth with high visibility as a best-in-class vertically integrated MCO in a highly defensive category.”

To this end, Wright rates UNH shares an Overweight (i.e. Buy), and her price target of $587 implies a gain of ~22% on the one-year time horizon. (To watch Wright’s track record, click here)

Overall, the Strong Buy consensus on this stock is backed by 10 recent analyst reviews, featuring a 9 to 1 breakdown favoring Buys over Holds. The stock’s average price target of $599.33 indicates potential for a 24% one-year upside from the current share price of $481.82. As a small bonus, the company also pays regular dividends that currently yield 1.4% annually.



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