12:55 PM EDT, 03/25/2024 (MT Newswires) -- Amedisys' ( AMED ) acquisition by UnitedHealth Group's ( UNH ) Optum unit is expected to be completed despite unconfirmed reports of a possible antitrust investigation by the US Department of Justice, RBC Capital Markets said in a note Monday.

The brokerage said it expects the combination of Amedisys ( AMED ) and Optum health services to create the largest home health platform in the US with about 10% market share.

"We continue to believe that the Optum/AMED deal will close given strong precedent for carriers operating home health assets and the high fragmentation across the home care sector, even pro forma for the combination," RBC said.

RBC raised its price target for Amedisys ( AMED ) to $100 from $97, factoring in the upside potential from a deal, and maintained its outperform rating on the stock.

However, it also provided a downside valuation of $74 in a potential deal-break scenario, reflecting "a discount to peers and a slight discount to preannouncement trading levels as the company shakes off any transaction-related disruption."

Price: 92.50, Change: +0.35, Percent Change: +0.38