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Oscar Health's 2029 Target Predicated on Solid Revenue Growth, UBS Says

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Oscar Health's (OSCR) target of reaching over $4 of earnings per share by 2029 is "predicated on fairly strong top-line growth," UBS Securities said Wednesday

Those expectations include a medical loss ratio of 80% and general and administrative expenses below 15%, leading to a 5% to 7% operating margin, UBS said after attending Oscar Health's analyst day.

"The $4 EPS target would seem to be towards the lower end of investor expectations, but we note this could have been driven by tax rate/share count assumptions and note there is seemingly potential for upside dependent on faster growth" or further general and administrative expense leverage, the report said.

UBS also highlighted that Oscar Health expects 2027 EPS above $2.25 and an operating margin higher than 5%.

Overall, the company is "in a better position" versus the three-year target provided previously, the report said.

UBS has a neutral rating on Oscar Health stock with a $26 price target.

Price: $32.64, Change: $+0.30, Percent Change: +0.93%

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