JP Morgan Keeps Faith in UnitedHealth (UNH) Amid Regulatory Reviews

On May 22, JP Morgan analyst Lisa Gill reiterated her optimistic view on UnitedHealth Group Inc. (NYSE:UNH) despite the recent issues, including the allegations made in a report by The Guardian.

On May 21, after the market closed, the Centers for Medicare and Medicaid Services (CMS) announced an expansion of its risk adjustment data validation (RADV) audits for Medicare Advantage plans. The analyst noted that it is difficult to gauge the financial impact of the expanded audits at this stage. However, she believes that large-cap insurers such as UnitedHealth Group, Humana Inc. (NYSE:HUM), and CVS Health Corp. (NYSE:CVS) have significant exposure within managed care.

Despite these developments, the analyst remained confident in UnitedHealth Group stock. While expecting the CMS audit to continue, she suggests investors should wait for UnitedHealth’s response, as the process is in the early stages. She also warned against factoring in any impact on company earnings as of now. The analyst has a Buy rating on the stock with a price target of $405.

UnitedHealth Group Inc. (NYSE:UNH) is one of the largest health care companies in the world. It provides health insurance and healthcare solutions in the U.S. and globally under the UnitedHealthcare and Optum brands.

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