There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on UnitedHealth (NYSE:UNH) and WNS Limited (NYSE:WNS) with bullish sentiments.
UnitedHealth (UNH)
In a report released today, Michael Wiederhorn from Oppenheimer maintained a Buy rating on UnitedHealth, with a price target of $276. The company’s shares closed yesterday at $256.98, close to its 52-week high of $259.01.
Wiederhorn noted:
“UNH reported 2Q:18 adj. EPS of $3.14 (GAAP:$2.98) vs. OPCO/Street estimates of $3.01/$3.04. Adj. results exclude $0.16/shr of amortization. Optum continues to drive overall UNH earnings growth, led by 80 bps of margin expansion. Although UnitedHealthcare results were largely in line with our estimates (MCR 81.9% vs. OPCO/Street 81.9%/81.8%), the company typically beat on the MCR by ~30-40 bps, as favorable development dipped to $20M from $200M last year. We will look for more color on the call on these trends. Q2 beat, UNH raised its FY2018 EPS guidance outlook to $12.50-12.75 from $12.40-12.65.”
According to TipRanks.com, Wiederhorn is a top 100 analyst with an average return of 16.8% and a 72.6% success rate. Wiederhorn covers the Services sector, focusing on stocks such as Cross Country Healthcare, Addus Homecare Corp, and Envision Healthcare.
Currently, the analyst consensus on UnitedHealth is a Strong Buy with an average price target of $282.33, implying a 9.9% upside from current levels. In a report issued on July 5, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $300 price target.
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WNS Limited (WNS)
Barrington analyst Vincent Colicchio maintained a Buy rating on WNS Limited today and set a price target of $57. The company’s shares closed yesterday at $52.81, close to its 52-week high of $54.38.
Colicchio commented:
“We expect WNS to release its fiscal Q1/19 earnings results on the market open. The company will subsequently hold a conference call at 8:00 am ET. The conference call dial-in number for U.S.”
According to TipRanks.com, Colicchio is a 3-star analyst with an average return of 7.5% and a 62.0% success rate. Colicchio covers the Technology sector, focusing on stocks such as Sykes Enterprises Inc, Exlservice Holdings, and Convergys Corp.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for WNS Limited with a $57.67 average price target.
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