Analyst Note
| Julie Utterback, CFA |UnitedHealth's strong results continued in the first quarter of 2022, as the firm delivered bottom-line results that were slightly higher than FactSet consensus and increased its 2022 guidance a bit. Our estimates for 2022 will likely remain within management's new targeted range, but we may increase our fair value estimate by about 5% primarily to account for cash flows generated since our last valuation change. Even after this change, the group's shares will likely still appear rich to us, especially relative to the company's MCO peers that have similar growth prospects but trade at lower multiples. Like its peers, UnitedHealth's economic moat remains narrow, which recognizes the long-term policy risks that the company faces despite its strongholds in medical insurance, pharmacy benefits, caregiving services, and analytical tools.