Leerink Partners analyst Whit Mayo has reiterated their neutral stance on CLOV stock, giving a Hold rating on February 24.
Whit Mayo has given his Hold rating due to a combination of factors surrounding Clover Health Investments’ recent performance and future outlook. The company demonstrated solid execution in the fourth quarter of 2024, with a positive premium yield and controlled medical expenses, leading to an adjusted EBITDA of $7.8 million, which surpassed expectations. However, revenues fell short of consensus estimates, and the company faces challenges in balancing growth and profitability in 2025.
Despite the strong medical margin improvements, Clover Health’s guidance for 2025 suggests a decrease in adjusted EBITDA at the midpoint, driven by increased investments to support membership growth and the impact of new members with higher medical loss ratios. Additionally, the price target was adjusted to $4.00, reflecting a more conservative valuation approach. These factors contribute to a cautious outlook, prompting the Hold rating as the company navigates its growth trajectory and profitability goals.
Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, Ardent Health Partners, Inc., and Acadia Healthcare. According to TipRanks, Mayo has an average return of 2.8% and a 47.35% success rate on recommended stocks.
In another report released on February 24, UBS also maintained a Hold rating on the stock with a $4.50 price target.