UBS Lifts Oscar Health Target to $20 After $679M Q1 Profit
UBS raised its price target on Oscar Health to $20 after Q1 revenue hit $4.65 billion and record profit of $679 million. EPS of $2.07 and over 50% membership growth drove a medical loss ratio of 70.5%, far exceeding analyst expectations.
1. UBS Raises Price Target
UBS increased its price target on Oscar Health to $20 from $15, reflecting a more optimistic view of the company’s earnings potential after the first quarter performance.
2. Q1 Financial Highlights
Oscar Health reported Q1 revenue of $4.65 billion and a record net profit of $679 million, with earnings per share of $2.07, significantly above the prior-year quarter and consensus forecasts.
3. Operational Drivers
The insurer achieved membership growth exceeding 50% year-over-year and maintained a medical loss ratio of 70.5%, demonstrating improved cost management and operational leverage.
4. Valuation and Rating Commentary
Despite robust results and the higher price target, UBS kept a Neutral rating, noting that the stock’s trading level near $20 leaves limited potential upside.