J.P. Morgan analyst Lisa Gill has maintained their bullish stance on UNH stock, giving a Buy rating yesterday.
Lisa Gill’s rating is based on the recent developments in the legal case involving UnitedHealth and the Department of Justice (DOJ). The Special Master recommended proceeding with UnitedHealth’s motion for summary judgment, suggesting that the DOJ did not adequately prove that UnitedHealth knowingly retained overpayments from unsupported diagnosis codes. This recommendation implies a higher burden of proof for the DOJ in such cases, which is seen as a positive development for UnitedHealth.
Furthermore, the report highlighted the lack of medical record reviews by the DOJ to substantiate their claims, which weakens their case. The Special Master’s findings suggest that the DOJ’s case lacks materiality and knowledge elements necessary for a successful claim under the False Claims Act. These factors, along with the ongoing efforts by CMS to audit risk coding practices, contribute to a more favorable outlook for UnitedHealth, justifying the Buy rating by Lisa Gill.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $697.00 price target.
Based on the recent corporate insider activity of 142 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UNH in relation to earlier this year.