J.P.Morgan Raises 2011E EPS To $4.25 On UnitedHealth Group

According to J.P. Morgan, UnitedHealth Group (NYSE: UNH) reported 2Q EPS at $1.16, about $0.27 ahead of estimate, while ex a potential $0.15 charge we had incorporated, the report would have come in $0.12 ahead.

J.P. Morgan said that, much like prior quarters, the upside was mostly on lower medical costs, with utilization remaining constrained, this a factor that should not be much of a surprise by now. “We are raising our 2011E EPS by $0.20 to $4.25 and our 2012E by $0.15 to $4.65. Our year-end '12 price target is $60/share.”

UnitedHealth Group closed yesterday at $51.45.