UPDATE: Morgan Stanley Initiates Coverage on UnitedHealth Group on Multiple Positive Factors

In a report published Thursday, Morgan Stanley analyst Andrew Schenker initiated coverage on UnitedHealth Group (NYSE: UNH) with an Overweight rating and $84.00 price target.

In the report, Morgan Stanley noted, “We expect UNH can continue to hold onto its premium multiple given its diversified platform, cash flow generation, and positioning for growth opportunities in Medicaid and Medicare. UNH's diversified offering and scale allow the company to benefit from all future growth drivers while spreading risk from a single segment across its book. Optum business provides higher growth engine outside of the traditional insurance business and is relatively insulated from reform uncertainties.”

UnitedHealth Group closed on Wednesday at $71.98.