By Christiana Sciaudone
Investing.com -- Healthcare companies fell Monday as investors worried that a new conservative judge on the U.S. Supreme Court could lead to the overturning of the Affordable Care Act. JPMorgan (NYSE:JPM) also downgraded Universal Health (NYSE:UHS) Services.
Presidential candidate Joe Biden in Philadelphia on Sunday warned that a conservative court could result in the elimination of health insurance for millions of Americans, the Los Angeles Times reported. President Donald Trump is trying to replace Ruth Bader Ginsburg, who died Friday, as quickly as possible to ensure a Republican-supported majority for the Supreme Court.
Tenet Healthcare (NYSE:THC) dropped 15%, Universal Health Services fell 12% and Moline Healthcare was down 10%. UnitedHealth (NYSE:UNH) fell 4.3%.
JP Morgan downgraded Universal Health Services to underweight from neutral and lowered its price target to $115 from $138, saying the best is behind the company.
"While the acute-care business is currently outperforming given a strong economic rebound in certain markets, we believe growth rates have peaked," StreetInsider reported the firm as saying. "We see the expanding market for behavioral services (and inherently lower capital intensity) as the key driver of value over the intermediate term, and we expect UHS to close the valuation gap to pure-play ACHC."