Clover Health Investments (CLOV) is poised for "strong" 2025 revenue guidance with the outlook for the medical loss ratio "less clear," UBS Securities said Monday in a report.
In Q4 results set for Thursday, "the focus will be on how the company's newfound growth will translate for MLR" and adjusted earnings before interest, taxes, depreciation and amortization, UBS said.
Growth for 2025 "was noted to have come largely from switchers, which should provide for improved economics" relative to new to Medicare Advantage members," UBS said.
The "relatively positive" Advance Medicare Advantage notice for 2026 may boost revenue in 2026, leaving the company on an "upward trajectory," the report said.
UBS raised its price target on Clover Health to $4.50 from $4 and maintained its neutral rating.
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