Oscar Health (NYSE: OSCR) specializes in offering health insurance plans through the Affordable Care Act (ACA) marketplace. On May 7, 2026, UBS maintained its "Neutral" rating on Oscar Health while raising its price target to $20.00 from $15.00, reflecting an updated view of the company’s outlook and valuation.
The revised target follows a standout first quarter for Oscar Health. According to Forbes, the company reported a record quarterly profit of $679 million. The strong performance was driven by health plan membership growth of more than 50% and lower medical costs, highlighting improving operating efficiency.
Financially, Oscar Health generated first-quarter revenue of $4.65 billion, representing year-over-year growth of 52.7%. The company also reported earnings of $2.07 per share. As noted by Zacks, this result exceeded the consensus estimate of $1.21 per share and improved substantially from $0.92 per share in the prior-year quarter.
A key driver of profitability was the company’s medical loss ratio of 70.5%. This metric measures the percentage of premium revenue spent on medical claims, with lower ratios generally indicating stronger profitability for health insurers. Oscar Health also benefited from operational leverage and continued investment in its technology platform.
Despite the strong financial results, UBS maintained a "Neutral" rating, likely reflecting valuation considerations. With Oscar Health shares trading near $19.84 at the time of the announcement, the stock was already close to UBS’s revised $20.00 price target, suggesting much of the positive earnings momentum may already be reflected in the share price.
