What happened
Oscar Health (OSCR 7.54%) was hardly a grouch of a stock on Thursday. The next-generation health insurance company's shares closed more than 16% higher on the day, thanks to a positive research note from a noted investment bank.
So what
Early Thursday morning, Credit Suisse analyst Jonathan Yong assumed coverage on Oscar Health stock. The prognosticator is quite bullish on the company's prospects, as he's tagged it with an outperform (i.e., buy) recommendation at a price target of $34 per share -- nearly double the stock's current level.
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That outlook matched that of Yong's predecessor, Jailendra Singh, who also flagged Oscar Health as an outperform worth $34 per share. Singh's prognostication was published in late March, several weeks after the health insurer's initial public offering.
The stock hasn't exactly lit the investing world on fire, having nosedived quickly and precipitously from its $36-per-share IPO price. While premiums and, especially, revenue have been on the upswing (as indicated by the company's recently reported second quarter), the company remains deeply in the red on the bottom line. In fact, its quarterly net loss deepened by over $32 million during the quarter, to just over $73 million.
Now what
It wasn't immediately apparent why Yong is continuing on Credit Suisse's bullish track for Oscar Health stock. The company -- a relatively very young player among established rivals in the health insurance industry -- certainly has potential, with its tech-based, customer service-focused approach. Perhaps with the investment bank reiterating its positive view on the shares, investors are starting to consider them a bargain just now.
