KeyBanc starts UnitedHealth at Overweight, notes durable drivers

KeyBanc analyst Matthew Gillmor initiated coverage of UnitedHealth with an Overweight rating and $675 price target UnitedHealth shares have outperformed the S&P 500 by 78% over the past five years, and the analyst believes this reflects two key drivers, namely: Medicare & Medicaid lives shifting to managed care organization models, and Optum capabilities creating efficiencies/advantages for UnitedHealthcare. These fundamental drivers of UnitedHealth’s business should remain firmly in-place over the next 5-10+ years, the analyst tells investors in a research note.