UPDATE: Bank Of America Reiterates On eHealth On ACA Ups And Downs

In a report published Friday, Bank of America analyst Nat Schindler reiterated a Buy rating on

, but lowered the price target from $55.00 to $53.00. In the report, Bank of America noted, “eHealth reported 1Q14 revenue/non-GAAP EPS of $51mn/$0.01 below the Street estimates of $51mn/$0.06 on lower than expected individual family plan (IFP) membership, though it maintained FY14 guidance. IFP applications were up 34% y/y at 170K while IFP approved applications were up 27% y/y to 145K, though the ACA surge in late March caused many of these new approved applications to not be counted as members in 1Q causing an optical increase in churn and lower total IFP member growth (8% y/y vs. 12% 4Q), offset by strong Medicare growth.” eHealth closed on Thursday at $41.86.