UnitedHealth Provides Outlook for 2021 & 2022; Street Says Buy


This article was originally published on TipRanks.com

Ahead of its annual Investor Conference that is scheduled to take place on November 30, UnitedHealth Group, Inc. (UNH) provided guidance for full-year 2021 and 2022 on November 29.

UnitedHealth is a diversified healthcare company, which offers healthcare coverage and benefits services through UnitedHealthcare, and information and technology-enabled health services through Optum.

For 2021, UnitedHealth has raised the upper range of its net earnings guidance to $17.80 per share to $17.95 per share from its prior expectations of $17.70 per share to $17.95 per share. Additionally, adjusted earnings are expected to be between $18.75 and $18.90 per share, compared to $18.65 per share and $18.90 per share guided previously. The consensus estimate for the same stands at $18.85 per share.

Meanwhile, revenues are expected to be about $287 billion, slightly above the Street’s estimate of $286.2 billion. (See UnitedHealth stock charts on TipRanks)

For 2022, the company anticipates revenues in the range of $317 billion to $320 billion, above the consensus estimate of $311.3 billion. While net earnings are expected to be in the range of $20.20 per share to $20.70 per share, the company expects to report adjusted net earnings of $21.10 per share to $21.60 per share, compared to analysts’ expectations of $21.63 per share. Cash flows from operations are expected to range from $23 billion to $24 billion.

Wall Street’s Take

On November 16, Deutsche Bank analyst George Hill reiterated a Buy rating on UnitedHealth and raised the price target to $477 from $421. The new price target implies upside potential of 5.5% from current levels.

The rest of the Street is optimistic about the stock and has a Strong Buy consensus rating based on 13 Buys and 2 Holds. The average UnitedHealth price target of $484.80 implies 7.3% upside potential.

Blogger Opinion

TipRanks data shows that financial blogger opinions are 100% Bullish on UNH, compared to the sector average of 69%.

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