Oscar Health initiated with an Overweight at Piper Sandler

Piper Sandler initiated coverage of Oscar Health with an Overweight rating and $25 price target. The firm calls Oscar an investment in Affordable Care Act exchanges where the company has 7% share of the $160B Individual and family plan market. Individual Coverage Health Reimbursement Arrangement, or ICHRA, adds an incremental $560B of addressable employer healthcare benefits spend, the analyst tells investors in a research note. The firm believes Oscar’s fiscal 2024 guidance is conservative and that 20%-plus sales growth is sustainable while profitability is inflecting.