‘Don’t Doubt UNH Yet,’ Top JPMorgan Analyst Defends UnitedHealth Stock amid Recent Volatility

Despite rising challenges, a Top-rated analyst, Lisa Gill from JPMorgan (JPM), remains confident about UnitedHealth Group (UNH). She recently reiterated a Buy rating on UNH stock with a $405 price target (33.4% upside potential). The bullish rating comes after a recent report by The Guardian about UNH’s value-based contracts and hospitalization review processes.

Further, the company has faced major setbacks over the past week, including a CEO shakeup, a withdrawn financial outlook, and stock hitting a five-year low.

Importantly, UNH shares have dropped 20% since these developments.

Why JPMorgan Remains Bullish on UNH

The article raised concerns about how UnitedHealth evaluates Admissions Per 1,000 (APK), a metric used to manage care and reduce unnecessary hospital stays. However, Gill believes these practices are standard in the industry.

Also, Gill noted that hospitalization decisions are complex. While the article mentioned cases of nursing facilities struggling with hospitalization calls, the analyst does not see evidence of widespread misconduct.

Moreover, the five-star analyst highlighted that the U.S. Department of Justice (DOJ) had earlier probed these concerns but declined to charge the company.

At the same time, Gill remains confident in the company’s fundamentals, viewing the recent sell-off as “overdone” and the current valuation as an opportunity for investors.

Is UNH a Good Buy Right Now?

Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 19 Buys, six Holds, and one Sell assigned in the last three months. At $380.59, the average UnitedHealth stock price target implies a 25.62% upside potential.

See more UNH analyst ratings