Sunday, March 15

eHealth, Inc. (EHTH) PT Slashed From $9 to $3 at RBC Amid Softer 2026 Outlook


We recently compiled a list of the 10 Oversold Insurance Stocks to Buy According to Analysts. eHealth, Inc. (NASDAQ:EHTH) is one of the most oversold insurance stocks on this list.

TheFly reported on March 11 that EHTH saw its price target reduced by RBC Capital to $3 from $9, while the firm reiterated a Sector Perform rating on the stock. Despite the company’s strong fourth-quarter results, the outlook was negatively impacted by lower-than-expected 2026 revenue expectations. The firm claims that conservative forecasts for the next annual enrollment cycle and a major Medicare Advantage insurer’s lower marketing investment are the main causes of the softer forecast.

On February 25, 2026, eHealth, Inc. (NASDAQ:EHTH) released its financial results for the fourth quarter and the entire year that ended on December 31, 2025. The company’s Medicare sector performed better than expected, contributing to a 4% year-over-year rise in quarterly sales of $326.2 million. Revenue increased to $554 million for the entire fiscal year, which is likewise a 4% increase over 2024.

eHealth, Inc. (EHTH) PT Slashed From $9 to $3 at RBC Amid Softer 2026 Outlook
eHealth, Inc. (EHTH) PT Slashed From $9 to $3 at RBC Amid Softer 2026 Outlook

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The corporation’s GAAP net income for the fourth quarter fell to $87.2 million from $97.5 million a year earlier despite strong top-line growth, mostly as a result of a higher effective tax rate. But because to improved Medicare unit economics and cost control initiatives, adjusted EBITDA increased 10% to $132.9 million.

For 2026, the business projected total revenue between $405 million and $445 million, alongside continued initiatives aimed at improving efficiency and profitability.

eHealth, Inc. (NASDAQ:EHTH) operates an online marketplace that helps consumers compare and enroll in Medicare and individual health insurance plans from multiple carriers across the United States.

While we acknowledge the potential of EHTH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

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