UnitedHealth's Q1 Medical Cost Update, Prudent Outlook Eases Investor Concerns: Goldman Sachs
Portfolio Pulse from Vandana Singh
UnitedHealth Group (NYSE:UNH) reported Q1 earnings with better-than-expected revenue and earnings, despite a cyberattack on its subsidiary Change Healthcare. Adjusted EPS was $6.91, up from $6.26 a year ago, with revenues increasing to $99.8 billion. The company maintained its adjusted EPS guidance of $27.50-$28.00. Goldman Sachs reaffirmed a Buy rating on UNH with a price target of $593, citing a positive medical cost update and prudent outlook. UNH shares rose 5.10% to $468.35.
April 16, 2024 | 6:03 pm
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UnitedHealth Group reported strong Q1 earnings, surpassing expectations with an adjusted EPS of $6.91 and revenues of $99.8 billion. Maintained EPS guidance and took a cautious approach by setting aside $800 million for potential cyberattack claims.
The positive earnings report and the maintenance of EPS guidance, despite the cyberattack, indicate strong operational performance and resilience. The setting aside of $800 million for potential claims shows prudence and may reassure investors about the company's risk management. Goldman Sachs' reaffirmation of a Buy rating and a price target of $593 further supports a positive outlook for UNH's stock in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100