Stifel Upgrades eHealth

Stifel upgraded eHealth, Inc. EHTH on Tuesday from Sell to Hold. EHealth is an online source of health insurance for individuals, families and small businesses.

Analysts at Stifel wrote, “Given the strong eHealth share price weakness, we believe many investors seem to be trying to establish a fair value for eHealth. In our view, fair value likely falls in the $8 to $10 range… We note that eHealth must generate a significant amount of submitted apps in 1Q14 in order to return to the levels of estimated IFP membership exhibited at the beginning of FY14."

Stifel notes that eHealth must increase the number of applications to become a member of The Health Connect Individual and Family Plan (IFP) which is critical to the company's success selling their insurance. However, Stifel goes on to say that, “We believe investors should exercise caution given the company's poor 4Q14 performance in an environment that should support strong submitted application activity."

Shares of eHealth recently traded at $10.62, up 11 percent.