eHealth, GoHealth downgraded at Truist amid industry challenges

Mar. 02, 2022 9:15 AM ETGoHealth, Inc. (GOCO), EHTHBy: Jonathan Block, SA News Editor

Truist has downgraded online health insurance brokers eHealth (NASDAQ:EHTH) and GoHealth (NASDAQ:GOCO) to hold from buy citing recent disappointing Q4 2021 results and a difficult road to positive operating cash flow.
The firm lowered eHealth's (EHTH) price target to $15 from $40 (~13% upside based on Tuesday's close) and GoHealth's to $2 from $6 (~1% upside).
Q4 results "highlighted further expense pressure, but more importantly we see cash generation as the key for these stocks to work again," said analyst Tobey Sommer.
He added that industry challenges provide a difficult path for improvement and the industry needs to consolidate, though what needs to be done for that to occur is not yet clear.
Read about eHealth's Q4 earnings here and GoHealth's (GOCO) here.
Check out why Seeking Alpha contributor Equanimity Investing considers GoHealth (GOCO) a hold.