Deutsche Bank analysts have downgraded the two largest for-profit health insurers, UnitedHealth of Minnetonka, Minn., and WellPoint of Indianapolis from "buy" to "hold," according to reports from StreetInsider.
Analysts noted UnitedHealth had the strongest set of assets of any national health insurer but added its commercial and Medicare medical loss ratios are "likely unsustainably low for the long-term," according to the report. Deutsche Bank lowered its price target to $61 from $73.
Analysts lowered WellPoint's price target to $68 from $72, downgrading the company's share rating in expectation of more caution in commercial risk margins. Still, they expressed optimism for WellPoint after its recent acquisition of Medicaid insurer AmeriGroup.
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Analysts noted UnitedHealth had the strongest set of assets of any national health insurer but added its commercial and Medicare medical loss ratios are "likely unsustainably low for the long-term," according to the report. Deutsche Bank lowered its price target to $61 from $73.
Analysts lowered WellPoint's price target to $68 from $72, downgrading the company's share rating in expectation of more caution in commercial risk margins. Still, they expressed optimism for WellPoint after its recent acquisition of Medicaid insurer AmeriGroup.
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