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.