In a report released today, Stephen Baxter from Wells Fargo reiterated a Sell rating on Oscar Health, with a price target of $10.00.
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Stephen Baxter has given his Sell rating due to a combination of factors that highlight significant uncertainties and challenges facing Oscar Health. The company’s Q2 results were in line with previous announcements, but there is skepticism regarding the achievability of the guidance for the second half of 2025 and the repricing efforts planned for 2026. The current guidance does not appear conservative, and there is a high level of uncertainty surrounding the company’s ability to improve its margins.
Additionally, the company’s discussions with states regarding rate refiling have been characterized as productive, but there are concerns about the impact of eAPTC expiration and the need for larger rate increases. The revised estimates for 2025, 2026, and 2027 show significant reductions in EBITDA, reflecting higher medical loss ratios despite some offset from general and administrative cost savings. These factors, combined with anticipated membership losses and the challenges in achieving pricing assumptions, contribute to the Sell rating.
In another report released on August 7, Barclays also maintained a Sell rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OSCR in relation to earlier this year.