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Morgan Stanley analyst Jenny Jiang initiated coverage of Waterdrop with an Overweight rating and $11.80 price target. Waterdrop's rapid commission revenue growth makes it attractive, while its crowdfunding business is a key feature that differentiates Waterdrop from peers, Jiang tells investors. The stock's current valuation is slightly higher than that of global insurtech names, but attractive relative to the company's roughly 50% growth profile, argues Jiang.

CLSA analyst Edwin Liu initiated coverage of Waterdrop with a Buy rating and $15.80 price target. With established brand recognition and superior customer acquisition abilities, Waterdrop is well positioned to benefit from the online life and health insurance "boom," Liu tells investors in a research note. Longer term, the company could build a second growth curve into the healthtech and insuretech space, says the analyst.

BofA analyst Michael Li initiated coverage of Waterdrop with a Buy rating and $11.50 price target. The analyst is citing the company's position as the second largest online insurance distribution platform in China, forecasting health insurance growth in China to remain at 20%-25% in 2021-2023. Li adds that volume growth, take rate improvement, and cost control are the three key drivers of Waterdrop's profitability and sustainable development.

BofA initiated coverage of Waterdrop with a Buy rating and $11.50 price target.

Goldman Sachs analyst Thomas Wang initiated coverage of Waterdrop with a Buy rating and $11 price target, implying 33% upside. Regulatory risks over short-term medical products' commission and rising competition from established healthcare platforms have raised concern over the long-term viability of Waterdrop business model, Wang tells investors in a research note. However, the analyst believes these concerns are largely priced in and sees an attractive risk/reward at current share levels. Wang sees a strong near-term growth outlook and opportunity for Waterdrop to become a healthcare ecosystem platform, linking its insurance customers with healthcare service providers.