In a report released yesterday, Adam Ron from Bank of America Securities reiterated a Buy rating on Oscar Health (OSCR – Research Report), with a price target of $22.00.
Adam Ron has given his Buy rating due to a combination of factors, including Oscar Health’s stronger than anticipated start to the year, alongside a conservative approach in their guidance. The company’s early performance indicators are solid, but they have prudently avoided raising guidance, factoring in uncertainties such as potential increases in the Medical Loss Ratio in the latter half of the year. This careful strategy, coupled with their robust revenue growth of 45%, underscores the company’s operational strength and disciplined financial management.
Furthermore, Ron sees value in Oscar Health’s strategic pivot away from its small group plans partnership with Cigna, toward the Individual Coverage Health Reimbursement Arrangement (ICHRA) market, which presents a substantial opportunity with a 71 million member Total Addressable Market (TAM). The refocus on ICHRA, along with the development of Oscar’s HealthIT segment, indicates potential for significant revenue growth. The analyst’s confidence is also bolstered by the expectation of almost $1 billion in excess parent cash by the end of 2026, providing Oscar Health with considerable capital deployment flexibility, which could include impactful share repurchases. This comprehensive analysis supports the Buy rating and a raised price objective.
According to TipRanks, Ron is a 4-star analyst with an average return of 32.3% and a 47.62% success rate. Ron covers the Healthcare sector, focusing on stocks such as Privia Health Group, Astrana Health, and Oscar Health.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $20.00 price target.
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Oscar Health (OSCR) Company Description:
Oscar Health Inc is a health insurance company. The company provides various insurance plans for individuals, family, and employees. Also, the company provides virtual care, doctor support, scheduling appointments, and other related services.
