Deutsche Bank Reiterates Buy Rating on UnitedHealth Group (UNH) Amid Potential DOJ Case Dismissal

Deutsche Bank analyst George Hill reiterated a Buy rating and $591.00 price target on UnitedHealth Group (NYSE: UNH) amid reports the company is closer to a DOJ case dismissal.

The analyst commented, "Bloomberg reported UNH received a favorable finding in a decade-long DOJ lawsuit which alleged the company overbilled Medicare by at least $2.1B, moving it one step closer to winning the case. A retired judge, Suzanne Segal, acting as a special master, recommended a dismissal of the lawsuit due to a lack of evidence and rejected the conclusion of the overpayments exceeding $2 billion. Whistleblowers initially filed the claims in sealed lawsuits over 15 years ago, which were joined by the DOJ in 2017 under the False Claims Act. The lawsuit alleged that UNH had known that many diagnosis codes it submitted for risk adjustments were not supported or validated by patients' medical records in the reviews, and had failed to remove these unsupported codes. The judge for this case must now decide whether to adopt the recommendation. While not final, we view the opinion by the special master as a strong rebuke of the government’s accusations against UNH, and supports our increasingly bullish thesis on UNH shares."

For an analyst ratings summary and ratings history on UnitedHealth Group click here. For more ratings news on UnitedHealth Group click here.

Shares of UnitedHealth Group closed at $474.61 yesterday.

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