UPDATE: Sterne Agee Reiterates On UnitedHealth Group On Raised Estimates, Less Near-Term Upside

In a report published Monday, Sterne Agee analyst Brian Wright reiterated an Underperform rating on UnitedHealth Group (NYSE: UNH), and raised the price target from $80.00 to $87.00.

In the report, Sterne Agee noted, “While our long-term view is supportive, we continue to expect less near-term upside in UNH shares as we see less 2H14 EPS upside to estimates than peers. With the first half of the year in the books, UNH appears able to achieve the top end of its improved guidance range of $5.50-$5.60, but we would be surprised by further meaningful upside for '14. Following 2Q14 results, we are raising our '14 EPS estimate by $0.23 to $5.60 (the top end of the guidance range) and our '15 EPS estimate by $0.41 to $6.21. Our '16 EPS estimate is $6.96. We are edging up our price target to $87 from $80 with our updated price target representing a 14x forward multiple on our '15 EPS estimate of $6.21.”

UnitedHealth Group closed on Friday at $85.52.