By Senad Karaahmetovic
Shares of Clover Health (NASDAQ:CLOV) are down over 11% in pre-open trading on Tuesday after the company reported Q2 results.
CLOV reported a net loss of $104.2 million on revenue of $846.7 million, better than the $816.7 million consensus. An adjusted EBITDA loss came in at $87.5 million, worse than the estimated loss of $85.1 million.
The company reiterated its full-year forecast for revenue and Medicare Advantage membership
A Credit Suisse analyst reiterated an Underperform rating and cut the price target to $3 per share. The analyst sees the risk that CLOV will “need funding at some point in the next year and missteps in benefit design or further MLR issues could exacerbate this.”
“While we are incrementally positive on the overall steps the company is taking to reign in costs and reduce cash burn, this will take some time to prove out,” he added.
A Citi analyst hiked the price target to $3.50 from $3.00 but reiterated a Neutral rating.
“While trends remain encouraging from a membership perspective, we believe all eyes continue to be on profitability generation. In that light, with the EBITDA miss in the quarter, uncertainty on back-half 2022 trends even in light of YTD performance, and a number of unknowns in terms of how CLOV will approach 2023 for both MA and DCE, find it difficult to have greater conviction in the name at this time,” he wrote in a client note.