BTIG analyst David Larsen upgraded 1Life Healthcare (ONEM) to Buy from Neutral with a $15 price target. Over the past two years, the stock has traded down from $60 to $10, making the multiple "far more reasonable now than it has been in the past," Larsen tells investors in a research note. The analyst also believes that the odds of 1Life being acquired are "fairly high." While the stock rallied 25% on July 5 following a Bloomberg article discussing a possible takeout, 1Life has further valuation upside potential driven by improving Medicare margins, steady membership and revenue growth, cross-sales between Medicare and Commercial, an abatement of COVID, and "well-managed" expectations, contends Larsen. He believes potential acquirers of the business include CVS Health (CVS), a large health plan such as UnitedHealth Group (UNH) or Elevance Health (ELV), or possibly a large publicly traded hospital system. A strategic takeout "seems a very real possibility," writes Larsen.