Wells Fargo downgrades Oscar Health to Underweight on cost trends

Wells Fargo downgraded Oscar Health (OSCR) to Underweight from Equal Weight with a price target of $10, down from $16. The firm says evidence of rising exchange acuity continues to build for Oscar. Exchange commentary from almost all public plans in Q1 was concerning, the analyst tells investors in a research note. Wells believes 2025 pricing is not adequate to cover cost trends and increasing market acuity. Oscar Health’s visibility could remain low for some time, the firm contends.