Ehealth Receives a Buy from Cantor Fitzgerald

Cantor Fitzgerald analyst Steven Halper reiterated a Buy rating on Ehealth (NASDAQ: EHTH) today and set a price target of $22. The company’s shares opened today at $18.84.

Halper said:

“. We reiterate our Overweight rating on EHTH shares and increase our 12-month price target to $22 from $20. We have assumed slightly higher operating margin assumptions in our long-term DCF model. Earlier this week, we hosted a small group investor meeting with EHTH’s CEO Scott Flanders. We remain optimistic that the company can grow its Medicare business in 2019 (and improve profitability) and stabilize its IFP segment (which has taken longer than the company and we had expected). Efforts to build the short-term medical business are ongoing, and because of that, we would not be surprised to see strong growth in membership this year. Revenue and income statement profitability are heavily skewed (due to ASC 606) due to 4Q open enrollment periods for coverage the following year.”

According to TipRanks.com, Halper is a 5-star analyst with an average return of 17.2% and a 69.2% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.

Ehealth has an analyst consensus of Moderate Buy, with a price target consensus of $20.

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Based on Ehealth’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $4.85 million. In comparison, last year the company had a net profit of $33.42 million.

Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is neutral on the stock.

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eHealth, Inc. offers Internet-based health insurance agency services for individuals, families and small businesses. Its ecommerce platform enables consumers to compare and contrast health insurance plans in a side-by-side format based on plan characteristics such as price, plan type, deductible amount, co-payment amount and in-network and out-of-network benefits. It operates through the following business segments: Medicare and Individual. The Medicare segment consists primarily of commissions earned fromsale of Medicare-related health insurance plans. The Individual segment consists primarily of commissions earned from sale of individual and family and small business health insurance plans and ancillary products sold to non-Medicare-eligible customers. The company was founded by Vipool Mohanlal Patel in November 14, 1997 and is headquartered in Mountain View, CA.