UnitedHealth Provides Outlook for 2021 & 2022; Street Says Buy

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%.