KeyBanc highlights UnitedHealth’s scale and bidding strategy as strengths for stock outlook By Investing.com
On Friday, UnitedHealth Group (NYSE:) received a new Overweight rating from KeyBanc, accompanied by a price target of $675.00. The firm highlighted UnitedHealth’s resilience in the face of rising utilization pressures that have impacted Medicare Advantage (MA) peers more significantly. KeyBanc attributes this robust performance to UnitedHealth’s scale, which allows for flexibility in selling, general, and administrative (SG&A) expenses, as well as a cautious approach to bidding in previous years.
The analyst from KeyBanc pointed out that UnitedHealth is likely under-earning by less than 0.5% on its MA book, compared to peers who are under-earning closer to 3%. This smaller margin of under-earning is seen as a potential advantage for…
