CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Shares jumped on UNH’s report of relatively mild financial impacts, in our view, from the Q1 cyberattack. We raise our 12-month target $18 to $515, 18.7x our 2024 EPS estimate (down $0.09 to $27.53), a premium to peers but below UNH’s recent historical average. We lower our 2025 EPS estimate by $0.10 to $31.10. UNH reported Q1 adjusted EPS of $6.91 vs. $6.26, beating consensus by $0.29, supported by Optum revenue growing 12.9% Y/Y on patient growth and higher Rx volumes. Optum segment adjusted operating margin declined to 6.4% from 6.9% in Q1 2023 given business disruption to OptumInsight. UNH indicated a $0.74 EPS hit from the cyberattack during the quarter and expects a full-year impact of $1.15-$1.35. Facing weaker Medicare reimbursement and the cyber incident, MCR of 84.3% rose from 82.2% in Q1 2023. With medical utilization elevated but within expectations, UNH maintained its long-term EPS growth trajectory despite the recent 2025 MA rate change, which fell below consensus forecasts.