Oscar Health upgraded at Bank of America on improving outlook
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- Bank of America upgraded Oscar Health (NYSE:OSCR) to Neutral from Underperform on Tuesday, citing visibility in the health insurer's improving margins and its path to remove financing overhang.
- The analyst Kevin Fischbeck argues that if Oscar (OSCR) can deliver its 2023/2024 EBITDA targets and harvest subsidiary capital as identified by the management, the company will still have a $186M – $301M of additional cash cushion, with 1-2 years extra runway.
- Fischbeck also points to Oscar's (OSCR) Q1 results to indicate its progress on margins and argues that new CEO Mark Bertolini "brings a proven track record of execution."
- However, the analyst leaves his estimates on OSCR unchanged while raising its price target to $8.75 from $5.40 per share.
- He cites caution, noting the need to see more definitive proof of margin trends and how the company can achieve growth through the exchanges amid ongoing Medicaid redeterminations.