Jason Cassorla, an analyst from Citi, maintained the Hold rating on Clover Health Investments (CLOV – Research Report). The associated price target is $1.50.
Jason Cassorla has given his Hold rating due to a combination of factors that paint a mixed picture of Clover Health Investments’ performance and future prospects.
Despite reporting a lower-than-expected revenue of $482M in the 3Q23, falling short of the consensus of $496M, Clover Health did beat EBITDA expectations by reporting a loss of only $5.1M, significantly less than the predicted loss of $31.6M. This was primarily driven by a consistently favorable MA MLR trend.
Furthermore, Clover Health has updated its 2023 guidance to reflect this positive trend. However, a recently agreed CMS settlement of $147M emphasizes the need for the company to achieve real profitability in 2024. This, coupled with the company’s announced intentions to scale back its Non-Insurance Medicare FFS business in 2024, raises questions about its forward capital position and ability to self-fund operations. Jason Cassorla, therefore, suggests a cautious approach towards the company, explaining his Hold rating.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Clover Health Investments (CLOV) Company Description:
Clover Health Investments Corp is a healthcare technology company. It uses its proprietary technology platform to collect, structure, and analyze health and behavioral data to improve medical outcomes and lower costs for patients.
Read More on CLOV:
- Clover Health Reports Third Quarter 2023 Results; Highlights Continued Improvement in Financial Performance and Improved 2023 Guidance
- Clover Health options imply 11.6% move in share price post-earnings
- Options Volatility and Implied Earnings Moves Today, November 06, 2023
- CLOV Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Clover Health promotes Karen Soares to general counsel
