EHealth (EHTH) has raised its full-year guidance following a stronger than expected start to the Annual Enrollment Period for Medicare, even as third-quarter results showed a decline in Medicare Advantage enrollment volume, RBC Capital said in a Monday note.
Management increased its 2025 adjusted earnings before interest, taxes, depreciation, and amortization guidance to $60 million-$80 million, up from the prior range of $55 million-$75 million.
RBC said early AEP indicators and eHealth's efficient growth execution are encouraging, noting that its carrier-agnostic model is benefiting from higher aggregate commission rates at some carriers.
According to the report, demand remains steady despite sector volatility, with many carriers lifting commission rates by mid-single digits, and management continues to report strong engagement on its carrier-agnostic platform.
The firm maintained its sector perform rating on the stock and lowered its price target to $9 from $10.
Shares of eHealth were up more than 3% in recent Tuesday trading.
Price: 3.71, Change: +0.10, Percent Change: +2.63
Comments