The stock price of UnitedHealth Group (UNH: NYE) took a big hit today due to the announcement by the Department of Justice that it has started an antitrust investigation against the company. As a result, the stock price dropped by 2.3% during early trading hours.
UnitedHealth’s Response to DOJ Probe:
In the face of the DOJ probe, UnitedHealth maintains a cooperative stance, stating its commitment to work hand-in-hand with the Department of Justice throughout the investigation. Despite the pressure, UnitedHealth continues to reiterate the positive impact of the Aetna merger and its advantageous consequences for the company’s performance. Investors anticipate the company’s detailed response to this investigation during its upcoming quarterly earnings report.
Stock Target Advisor’s Take on UnitedHealth:
Based on the evaluation by Stock Target Advisor, despite the DOJ antitrust probe, UnitedHealth’s stock still garnered a ‘Buy’ rating with a target price of $594.5. This represents an impressive price change of 15.79% projected over the next 12 months. Furthermore, the average analyst target price stands at a burly $575.19 with a ‘Strong Buy’ rating.
There are nine analysts with average target price standing at $575.19, indicating a universal ‘Strong Buy’ rating consensus for UNH. In its sector, Healthcare Plans, the average analyst rating is ‘Buy’, with an average 1-month return of 9.45%. Top-ranking analysts from Morgan Stanley & Co., Mizuho Securities, and Wells Fargo & Co. hold a positive outlook for this sector.
Bottomline:
Despite the looming DOJ antitrust probe, the company’s robust financial performance and bullish market sentiments indicate a positive future outlook. However, investors must keep a close eye on the progression of DOJ’s probe and UNH’s response in their upcoming earnings report.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
