Oscar Health initiated with an Underperform at Jefferies

Jefferies analyst David Windley initiated coverage of Oscar Health (OSCR) with an Underperform rating and $12 price target The firm says health insurance exchange market growth, Oscar’s core business, is “overstimulated” by enhanced subsidies and lax disclosure enforcement, which is beginning to unwind. Given the company’s overexposure to subsidy-sensitive states, it will be unable to fully mitigate headwinds with buybacks, the analyst tells investors in a research note.