UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on eHealth on Q4 Results Miss

In a report published Friday, Deutsche Bank reiterated its Hold rating on eHealth

, and raised its price target from $20.00 to $22.00. Deutsche Bank noted, “eHealth reported 4Q12 adjusted EPS of $0.18 (-5% y/y), below our $0.24 estimate. Total revenue of $45.3 mln (+5% y/y) also fell short of our $47.9 mln as well as the Street's $46.2 mln. Mgmt attributed the miss largely to the fact that nearly 100% of 4Q12 Medicare demand generation was fulfilled in house, a faster timetable than expected. As such EHTH didn't recognize any up-front referral revenue as it had previously. While this is positive longer term since commission revs are much greater over the life of the contract, it negatively impacted 4Q results. Despite the miss, fundamentals continue to improve but reform uncertainties remain in 2H13-2014.” eHealth closed on Thursday at $25.40.