UPDATE: Citi Upgrades Bright Health Group (BHG) to Buy

August 4, 2021 4:14 AM EDT
Get Alerts BHG Hot Sheet
Price: $8.65 -2.48%

Rating Summary:
    8 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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(Updated - August 4, 2021 5:42 AM EDT)

Citi analyst Ralph Giacobbe upgraded Bright Health Group (NYSE: BHG) from Neutral to Buy, PT $12.00 (from $16.00).

The analyst comments "Bright Health reported a mixed first quarter as a publicly traded company with enrollment above our expectation, but cost running higher. The company attributed the higher cost to COVID, and while mgmt suggested core non-COVID trends inline with expectations, the “adjusted” MLR stat never goes over well. Additionally, a hefty investment gain that was included in adjusted EBITDA helped prop up an otherwise greater drag on profitability. That said, we view the 22% pull-back in the stock as excessive as we consider top-line that showed better, and new market entrance for next year. Moreover, we concede the potential for higher cost in 2H, but we do put credence around favorable non-COVID cost among its HIX membership base, which should limit magnitude of higher aggregate trend, in our opinion. We lower our TP to $12 (from $16) but upgrade the stock to Buy/High Risk (from Neutral/High Risk)."

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

Shares of Bright Health Group closed at $8.49 yesterday.

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