Analyst Joanna Gajuk from Bank of America Securities reiterated a Sell rating on Oscar Health and decreased the price target to $11.00 from $13.50.
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Joanna Gajuk’s rating is based on several factors impacting Oscar Health’s financial outlook. The company faces significant challenges in accurately pricing its plans for 2026 due to dramatic shifts in risk pools. This uncertainty is compounded by the potential disenrollment of over 25% of its member base as enhanced subsidies expire and new restrictions take effect. Consequently, Oscar Health’s ability to price appropriately to risk is in question, which could lead to further financial instability.
Additionally, Oscar Health has revised its 2025 earnings expectations downward, projecting a substantial loss instead of a gain. This adjustment is attributed to higher morbidity rates nationwide, which have negatively impacted risk adjustment revenues and increased the Medical Loss Ratio. Although utilization trends have moderated, the overall financial outlook remains bleak, prompting Joanna Gajuk to maintain a Sell rating on the stock.
Gajuk covers the Healthcare sector, focusing on stocks such as Encompass Health, HCA Healthcare, and Centene. According to TipRanks, Gajuk has an average return of -1.7% and a 49.25% success rate on recommended stocks.
In another report released today, Barclays also maintained a Sell rating on the stock with a $11.00 price target.