Oscar Health, Inc. (OSCR) shares plunged 5.09% in pre-market trading on Friday, following a significant downgrade from Wells Fargo. The health insurance technology company's stock took a hit after the influential investment bank lowered its rating and slashed its price target, raising concerns among investors about the company's near-term prospects.
Wells Fargo downgraded Oscar Health from Equal Weight to Underweight, signaling a more pessimistic outlook on the stock. Additionally, the bank substantially reduced its price target for OSCR from $16 to $10, representing a 37.5% cut. This drastic reduction in the price target suggests that Wells Fargo analysts have become considerably more bearish on Oscar Health's potential for growth and profitability in the coming months.
Despite the negative assessment from Wells Fargo, it's worth noting that the overall analyst sentiment on Oscar Health remains mixed. According to FactSet, the average rating for OSCR stock is Hold, with a mean price target of $17.56. This indicates that while some firms like Wells Fargo have taken a more cautious stance, others maintain a more optimistic view of the company's future. Investors will likely be closely watching for any further analyst actions or company developments that could impact Oscar Health's stock performance in the near term.
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