Oscar Health (OSCR) has revenue growth goals, but with limited short-term visibility, and margin and earnings estimates are expected to be below targets, UBS said in a note Monday.
The company is executing growth initiatives cautiously, projecting a revenue of $11.1 billion in 2025, and a more conservative stance for 2026 and 2027 due to the expiration of enhanced subsidies, the investment firm said.
Oscar Health projects a decline in membership, but aims to offset that through 8% growth in existing markets and 10% expansion into new markets by 2026, UBS noted.
The company has successfully reduced general and administrative costs per member to $100 from $170, signaling improved cost control measures, according to UBS.
UBS set a neutral rating and $23 price target for Oscar Health.
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