UnitedHealth Group (NYSE:UNH) recently announced a significant transaction, finalizing an agreement to divest its operations in Brazil to José Seripieri Filho, a prominent figure in the health insurance sector and the founder of Qualicorp. This deal, which is a substantial strategic shift for UnitedHealth, involves a one-time charge of close to $7 billion, as detailed in their latest regulatory filing. However, the impact is primarily non-cash due to foreign currency translation losses.
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Consequently, this charge is expected to influence the company’s 2024 net earnings, but UnitedHealth reaffirms that it will not affect its adjusted earnings. The company remains committed to the adjusted earnings outlook presented during its annual investor conference in November.
According to Reuters, the acquisition bid from Seripieri is approximately $515.24 million. UnitedHealth expressed confidence in the transaction, citing Seripieri’s extensive local expertise and experience as key to continuing the business’ growth trajectory.
What is the Target Price for UNH?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UNH stock based on 16 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 10.2% increase in its share price over the past six months, the average UNH price target of $589.75 per share implies 12.1% upside potential.
