Shares of Clover Health Corp (CLOV) plummeted nearly 9% on Monday after UBS Securities initiated coverage on the healthcare company with a neutral rating and a price target of $4, suggesting the stock is currently "fully valued."

While acknowledging Clover Health's improved Medicare Advantage star rating and prospects for enrollment and revenue growth, UBS analysts cautioned that these positive developments are already reflected in the stock price. They projected revenue of $1.6 billion in 2025 and $1.8 billion in 2026, driven by enrollment growth of 10% and 8% in those respective years.

However, the analysts pointed out that Clover Health's enrollment growth in its key state of New Jersey is only outperforming the market in a few core counties, posing a near-term "headwind" to growth. This assessment contributed to the stock's sharp decline on Monday.