UPDATE: Wedbush Color On UNH Target Increase

Wedbush, which raised its PT on shares of Unitedhealth Group, Inc. (NYSE: UNH), is providing some color on the stock.

“We are raising our 2011 estimate to $3.86 from $3.83 and our 1Q11 estimate to $0.86 from $0.82,” Wedbush writes.

“Our price target of $51 represents a 13.2x multiple of our 2011 estimate of $3.86. We believe the company is undervalued given 1) the opportunity for meaningful growth in the HC services segment, 2) low utilization driving margin upside, 3) the ability to access the Medicare and Medicaid growth cycles as the market leader in both segments, 4) segments, decreased healthcare reform risk as we gain better clarity and recognize the potential benefit from credibility adjustments.”

Unitedhealth Group closed Monday at $44.32.