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Fly News Breaks for February 21, 2020
EHTH
Feb 21, 2020 | 09:09 EDT
Craig-Hallum analyst George Sutton maintained a Buy rating on eHealth (EHTH) and raised his price target on shares to $200 from $150 following Q4 results that "sharply exceeded" pre-released results. While the analyst noted that most investors would look at the stock's chart and think they missed the move, Sutton believes there is a "compelling story" that is still in "early stages." The analyst said that with about 36M people enrolled in Medicare Advantage or Medicare Supplement, eHealth's 498K members represent only a 1.4% market share, and that does not include an additional 24M eligible seniors that have not opted for Medicare Advantage, or the fact that number will "continue to expand as more baby boomers age into eligibility." Sutton additionally sees eHealth benefiting from a secular shift towards online enrollment.
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