Jefferies Maintains Underperform Rating on $OSCR, Lowers PT to $8 from $9
Analyst comments: "The stock rising 8% on a $500 million EBIT cut doesn't make a lot of sense, even if positioning was extreme. Other factors could be that no capital raise was launched or, at face value, Oscar Health raising 2025 medical loss ratio by +530 basis points is less bad than Centene and Elevance Health’s mid-high single-digit percent increases. However, guidance appears very aggressive. We expect another 200bp+ MLR/margin cut that lands Oscar’s pressure roughly in line with CNC and ELV and lower our projected FY25/FY26 EBIT estimates to ($156M)/($89M). Price target lowered to $8. Reiterate Underperform."

