eHealth Launches 'Prudent' Three-Year Plan, RBC Says
eHealth (EHTH) has introduced a "prudent" three-year financial plan that should lead to mid-teens percentage growth in 2028,RBC Capital Markets said in a Thursday report."We view 2026 as a purposeful bridge year, with the company intentionally pulling back on marketing spend to prioritize cash flow generation and operational restructuring," the report said.The plan includes targets for mid-single digit revenue growth in 2027, driven by Medicare agency business and contribution from ancillary cross-selling with the lifetime advisory model, it said."While valuations sector-wide remain depressed followingpersistency headwinds and muted cash flow conversion, we are encouraged by the relative resiliency of eHealth's receivables," the note said.RBC kept its sector perform rating and $3 price target.Price: $1.75, Change: $-0.03, Percent Change: -1.97%
