UnitedHealth (UNH) reported strong Q2 results, featuring top and bottom-line beats, an improved medical care ratio, and raised full-year guidance for both UnitedHealthcare and Optum Health, reflecting Q2 outperformance and higher expectations for H2, Truist Securities said Thursday.

Total revenue of $112 billion beat Truist's estimate of $110.2 billion and the consensus estimate of $110.8 billion, as premiums, products, services, and investment income all exceeded expectations, according to the note.

The brokerage remains upbeat on the company's ongoing initiatives, including governance policies, greater transparency in its fee-based pharmacy model and 100% pass-through of drug rebate discounts, affordability, and improvements to the authorization system, the note added.

Truist kept a buy rating on UnitedHealth with a price target of $480.

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