Barclays Initiates Oscar Health at Underweight

2025-07-02 15:13:00

Barclays has initiated coverage on Oscar Health (NYSE:OSCR) with an Underweight rating and a $17 price target. The insurer’s ambitious margin and growth targets may be at risk due to emerging policy risks highlighted by Barclays. Oscar aims to achieve over $2.25 EPS by 2027, but recent policy developments could pressure these targets.

Shares of Oscar have surged over 50% in June on speculative retail buying, creating asymmetric downside risk. Barclays’ 2027 EPS estimate of $1.28 is 25% below consensus, reflecting skepticism about Oscar’s ability to deliver on its aggressive profitability plan. The Underweight rating reflects concerns about regulatory and reimbursement uncertainties impacting earnings growth.