UNHG: Leveraging The UnitedHealth Rebound

The Leverage Shares 2X Long UNH Daily ETF offers leveraged exposure to UnitedHealth's stock via derivative positions with mild basis risk. Despite its recent recovery, we still see UnitedHealth as being undervalued. By using forward P/E and management's guidance, we set a base target of $344 per share. Additional demand could arrive via a herding effect, likely triggered by Warren Buffett's Berkshire Hathaway and Renaissance Technologies revealing positions in UNH via their 13-F filings.