UnitedHealth named ‘Top MCO Pick’ at BofA after selloff

BofA analyst Kevin Fischbeck says UnitedHealth, which was already pressured by Medicare Advantage trend and rate concerns, has been “beset” by a DOJ probe and a cyber attack in the past month and although “neither piece of news is welcome,” the magnitude of the selloff “far outweighs the likely impacts.” UnitedHealth is now trading at 82% of the market multiple although it has traded above this level 95% of the time over the past 10 years, “making it a compelling value,” so the firm is making the stock its Top MCO Pick. BofA has a Buy rating and $675 price target on UnitedHealth shares.