Goldman Sachs is reducing their price target for UnitedHealth (NYSE:UNH) to $51 from $54 to reflect the company's recent outlook for a higher commercial medical cost ratio (MCR). Firm sees likely stock downside on first quarter 2007 results with a confluence of company-specific and industry pressures on multiple areas of the company's commercial and Medicare business. They tweak down their 1Q2007 and 2007 EPS estimates by a penny each to $0.71 and $3.42, respectively. While they do not expect the company to miss earnings, firm believes that the combination of factors weighing against the company this quarter (MCR and enrollment, commercial and Medicare) are likely to impact investor confidence in the growth outlook for the company for 2007 and beyond, resulting in stock downside.
Notablecalls: UNH is a short near the close if you're able to get a fill.
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