Today's reports on UnitedHealth focus focus on analyst reaction to the news that the giant health plan will restate earnings, setting the stage for more potential excitement. The news will probably have an impact, but CitiGroup analyst Charles Boorady thinks at the end of the day "it is unlikely criminal activity was found." A.G. Edwards analyst Paul Newsome argues that in the light of the current situation, "it seems premature to believe that the CEO will resign." Jim Cramer writes the inquiry "is not cause to sell." Is the worst over? Reaction is clearly divided, but the consensus appears to be, er...maybe?
The Street's Melissa Davis points out that Goldman Sachs analyst Matthew Borsch called the health plan's problems months before the Wall Street Journal article that led to the backdating scandal, writing [Borsch's] "call on UnitedHealth is starting to look as well-timed as the stock-option grants that made CEO William McGuire a paper billionaire."
- see this article from The Wall Street Journal (sub. req.)
- read this dissenting view on the Street.com
PLUS: UnitedHealth may be struggling but it sounds like the insurer shouldn't count on sympathy from doctors right now. Article