UnitedHealth’s Price Target Boosted at Morgan Stanley (UNH)


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Health and prescription benefits company UnitedHealth Group Inc.( UNH ) saw its price target raised on Wednesday by analysts at Morgan Stanley.

The firm said it now expects UNH shares to reach $42, which implies a 20% upside to the stock's Wednesday closing price of $35.07.

Morgan Stanley noted the company should continue to experience growth in its services segment, and maintained its "Overweight" rating.

UnitedHealth shares fell 17 cents, or -0.5%, in premarket trading Wednesday.

The Bottom Line
We have avoided shares of UNH since our early June 2008 coverage began, when the stock was trading at $33. The company has a 1.43% dividend yield, based on last night's closing stock price of $35.07. The stock has technical support in the $32 price area. If the shares can firm up, we see overhead resistance around the $37-$42 price levels. We would remain on the sidelines for now.

UnitedHealth Group Inc.( UNH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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