eHealth (EHTH) Stock Forecast & Price Target

eHealth Inc. experienced a significant increase in approved members, rising by 13.8% year-over-year to 111.8K, driven primarily by a robust 25.7% growth in Medicare Advantage approved members. The company reported a year-over-year revenue growth of 21.7%, reaching $113.1 million, which exceeded both internal and consensus estimates. Strategic enhancements in marketing and improvements in conversion rates have further bolstered eHealth's financial performance, reflecting a positive outlook for the company's future growth potential.

eHealth Inc. exhibits a negative outlook primarily due to a projected downside scenario indicating a price drop associated with anticipated higher turnover rates during the upcoming 2025 Annual Enrollment Period (AEP), which raises concerns about the company's long-term value (LTV) assumptions. Despite favorable trends in operating expenses, with a 3.4% year-over-year decrease in technology and content expenses and a 7.7% decline in general and administrative expenses, these cost-cutting measures may not be sufficient to offset challenges in customer retention. Additionally, a significant decline of 4.7% year-over-year in Medicare Average Lifetime Value (LTV) to $907 further underscores the increased risk and uncertainty surrounding the company's financial stability and growth potential.