UPDATE: Bank of America Upgrades eHealth to Buy on Accelerating Medicare Segment
In a report published by Bank of America, analyst Nat Schindler upgraded eHealth, Inc. (NASDAQ: EHTH) from Underperform to Buy and maintained the price objective at $26.
In the report, Schindler wrote, "We believe eHealth's recent 32% sell-off post the Q4 print is overdone. Although the Medicare segment performance in Q4 was weaker than expected, we remain encouraged about: 1) Medicare seg should sequentially accelerate throughout 2013; 2) clarity surrounding the Affordable Care Act should improve heading into 2014; 3) increased investments reduce near-term outlook but likely best long-term strategic business decision; and 4) continued shareholder friendly capital return. We are upgrading our rating from Underperform to Buy."
eHealth closed Monday at $17.68.
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