Needham Starts Clover Health (CLOV) at Buy

Needham analyst Matthew Shea initiates coverage on Clover Health (NASDAQ: CLOV) with a Buy rating and a price target of $6.00.

The analyst comments "We are initiating coverage of Clover Health (CLOV) with a Buy rating, $6 PT. We believe Clover's cohort economics underpin a compelling LT earnings opportunity, as its Clover Assistant enabled care model drives improved medical cost performance and higher gross profit as members mature. Rapid membership growth expands this opportunity, with management citing ~$155 PMPM higher insurance gross profit in year three versus year one. We view Clover's 5-star PPO rating as an incremental catalyst for enrollment and benefit competitiveness, while Counterpart offers additional upside through external commercialization of its technology. Although medical cost trends and a premium valuation present risks, we believe improving cohort economics and operating leverage can support sustained EBITDA growth and create attractive upside for shares."

For an analyst ratings summary and ratings history on Clover Health click here. For more ratings news on Clover Health click here.

Shares of Clover Health closed at $4.63 yesterday.

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