Analysts at Goldman Sachs on Monday issued a downgrade to health
insurer UnitedHealth Group Inc. (
), while upgrading its rival Aetna Inc. (
The firm said it downgraded UNH from "Buy" to "Neutral" with a
$46 price target, which implies a small upside to the stock's
Friday closing price of $42.49. Goldman noted the company could
face pressures due to its earnings exposure to Medicare
Meanwhile, the firm upgraded AET from "Neutral" to "Buy" while
boosting its price target from $37 to $44. That new target suggests
an 18% upside to the stock's Friday closing price of $37.42.
Goldman noted that Aetna shares have underperformed those of its
peers, and are ready to shoot higher. Goldman also raised its
earnings estimates for the company through 2012.
UnitedHealth shares fell 37 cents, or -0.9%, in premarket
trading Monday, while Aetna shares rose 50 cents, or +1.3%.
The Bottom Line
Shares of UnitedHealth (
) have a 1.18% dividend yield, based on Friday's closing stock
price of $42.49.
Shares of Aetna (
) have a 1.60% dividend yield, based on Friday's closing stock
price of $37.44.
UnitedHealth Group Inc. (
) and Aetna Inc. (
) are both rated "Neutral," with both stocks holding a
Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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