UnitedHealth Group (UNH) PT Raised to $259 at Piper Jaffray; Remains Bullish

Piper Jaffray raised its price target on UnitedHealth Group (NYSE: UNH) to $259.00 (from $242.00) while maintaining a Overweight rating. Analyst Sarah James still sees 2018/2019 estimates as conservative with potential for 3%+ upside to 2019 estimates should the company continue to see similar growth rates in Optum, close the Banmedica acquisition in 1Q18, and continue to deploy capital, likely on the OptumCare side.

UNH's tax rate dropped from 37% to 24% and tax reform lowered 2018 revenue guidance by $400-500M more than half of which was driven by lower Medicaid reimbursement required to cover the HIF gross up with the remainder MLR minimum rebates.

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