Reaction to WSJ report on UnitedHealth ‘overdone,’ says RBC Capital

RBC Capital says this morning’s unconfirmed Wall Street Journal article on UnitedHealth (UNH) undergoing a DOJ civil probe into diagnosis practices among its physician practices that could be resulting in extra Medicare Advantage payments “presents another headline overhang,” but believes the pre-market reaction is “likely overdone given what we expect is a long-date probe with an extended timeline to any resolution.” Though “disappointed to see another overhang emerge amid a flurry difficult headlines,” the firm is reiterating its Outperform rating and $655 price target on UnitedHealth shares.