Deuetsche Bank Downgrades UnitedHealth, WellPoint

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.

Advertisement

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.

More Articles on Health Insurers:

Health Insurers Open Retail Stores Akin to Apple’s Genius Bar
HHS OKs 8 More Insurance Exchanges, 20 Total Now Approved
Humana Divests Medicare Advantage Plans in 4 Markets to Cigna

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.