UnitedHealth Group: Cyberattack Is Manageable, Initiate With A ‘Strong Buy’

Summary:

  • UnitedHealth’s aggressive M&A strategy, including the $13 billion acquisition of Change Healthcare, has strengthened its data analytics and improved margins, justifying a ‘Strong Buy’ rating.
  • Despite a major cyberattack, UnitedHealth’s financial impact is manageable, with expected EPS reduction and increased CAPEX for cybersecurity enhancements.
  • UnitedHealth’s divestiture of its Brazilian business reduces FX risk, aligning with its focus on U.S. market growth driven by rising healthcare spending.
  • I estimate UnitedHealth’s 8% revenue growth, supported by market expansion and strategic acquisitions, leading to a one-year target price of $700 per share.

UnitedHealthcare Indiana Office. UnitedHealth Group Provides Employer, Individual and Family Health Insurance.

jetcityimage

UnitedHealth (NYSE:UNH) is the world’s largest health insurance company, offering a full range of health benefits and operating Optum health services business that serves the broad healthcare marketplace. UnitedHealth has been leveraging its strong balance sheet to pursue both


Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *