Cautious Outlook on Oscar Health: Sell Rating Amid Uncertain Profitability and Market Dynamics

Tip Ranks
2025.11.13 11:05
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Analyst Stephen Baxter of Wells Fargo has maintained a Sell rating on Oscar Health, lowering the price target to $11.00 due to concerns over the company's profitability and market dynamics. Despite potential market share gains in 2026, uncertainties regarding the medical loss ratio (MLR) and the impact of subsidy expirations contribute to a cautious outlook. UBS also issued a Sell rating with a $12.00 target. Baxter's average return is -2.5% with a 41.81% success rate in the Healthcare sector.

Analyst Stephen Baxter of Wells Fargo maintained a Sell rating on Oscar Health, reducing the price target to $11.00.

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Stephen Baxter has given his Sell rating due to a combination of factors including Oscar Health’s recent financial performance and future market dynamics. Despite Oscar Health’s potential to gain market share in 2026, the company’s ability to improve its medical loss ratio (MLR) remains uncertain, as the anticipated improvements are offset by lower prior year development. This leads to a cautious outlook on the company’s profitability improvements.
Additionally, the decision to lower the price target to $11 reflects the increased likelihood of subsidy expirations, influenced by recent political developments. While there are initiatives to reduce operating expenses, the overall financial outlook remains challenging, with revenue estimates increasing due to market share gains but offset by rising MLR. These factors contribute to the Sell rating, as the potential risks outweigh the expected benefits.

According to TipRanks, Baxter is an analyst with an average return of -2.5% and a 41.81% success rate. Baxter covers the Healthcare sector, focusing on stocks such as Centene, Molina Healthcare, and Elevance Health.

In another report released on November 7, UBS also maintained a Sell rating on the stock with a $12.00 price target.

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