Oscar Health downgraded to Neutral at BofA on subsidy overhang

As previously reported, BofA downgraded Oscar Health to Neutral from Buy with a price target of $21, down from $25. Moving closer to the election, the firm believes that the uncertain status of the exchange subsidies, which were passed under Biden and are set to expire January 1, 2026 under current law, will weigh on the stock, making it difficult to argue for multiple expansion. The firm’s new valuation assumes a 50% probability that they expire, meaning that if they do go away, the stock could be down, notes the analyst, who also points out the stock has been up almost 200% over the past year.