UnitedHealth (UHS) shares have crashed in recent weeks amidst a tirade of bad news, including allegations that it made bonus payments to nursing homes in a bid to reduce hospitalizations. 

Still, JPMorgan analyst Lisa Gill remains convinced that UNH shares are worth buying following the massive decline. 

In her recent note to clients, Gill said the healthcare stock is strongly positioned for a full recovery to $405 over the next 12 months. Her price target indicates potential upside of 35% from here. 

Why Those Allegations Shouldn’t Matter Much for UNH Shares

Earlier this week, The Guardian accused UnitedHealth of secretly paying nursing homes to reduce hospitalizations. 

However, that’s a standard practice in the insurance industry aimed at minimizing unnecessary hospitalizations, argued Lisa Gill in her latest research note. 

Plus, these allegations have already been investigated by the Department of Justice (DOJ), which decided in favor of not pursuing a lawsuit, indicating lack of sufficient evidence to establish wrongdoing, she added. 

Nonetheless, the damaging report resulted in a further decline in UnitedHealth stock that’s down more than 50% versus its year-to-date high at the time of writing. 

UnitedHealth Remains Robust in Terms of Financial Health

JPMorgan remains positive on UNH shares also because the insurance giant’s impressive EBITDA of about $36 billion coupled with strong cash flows suggest robust financial health. 

According to Lisa Gill, the healthcare stock is worth owning at current levels also because it’s now trading at a multiple that materially trails its historical average. 

Additionally, a dividend yield of 2.83% makes UnitedHealth stock significantly more exciting to own in 2025. 

Investors should note that insiders remain bullish on UNH’s long-term prospects as well. Three of them have loaded up on more than $1.5 million worth of UnitedHealth shares in recent sessions. 

Wall Street Continues to Be Bullish on UnitedHealth Stock

Despite a cascade of bad news, other Wall Street analysts haven’t thrown in the towel on UNH stock either. 

The consensus rating on UnitedHealth Group currently sits at “Strong Buy” with the mean target of about $392 indicating potential upside of more than 30% from current levels.