NEW YORK (TheStreet) -- Shares of UnitedHealth Group (UNH) were up 0.97% to $123.52 in afternoon trading Friday to add to its rally from yesterday following the U.S. Supreme Court decision that the federal government can continue issuing subsidies to Americans through the Affordable Care Act.
Eligible American in the 34 states with federal marketplaces, as well as those living in states with their own exchanges, will continue to get federal tax credits.
"Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them," Chief Justice Roberts wrote for the court.
This morning, analysts at Sterne Agree upgraded UnitedHealth to "buy" from "neutral" with a $161 price target.
Sterne Agree analysts said the company can gain market share and should continue to be the best capital allocator in the industry.
Minnetonka, MN-based UnitedHealth Group is a diversified health and well-being company that engages in enabling technology and clinical care management.
Separately, TheStreet Ratings team rates UNITEDHEALTH GROUP INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITEDHEALTH GROUP INC (UNH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."