eHealth (NASDAQ:EHTH) share gained more than 30% since the company’s reported Q4 results last week, with revenue of $196.3 million beating the Street estimate of $179.01 million. EPS came in at $0.41, compared to the Street estimate of $0.56.
According to the analysts at RBC Capital, the company posted a strong finish to 2022, having demonstrated solid execution on quality enhancement initiatives launched in the second half of 2021, which principally involved the overhaul of sales and marketing practices, as well as attention to improvement in lead quality.
The analysts expect momentum to continue given member retention initiatives and diversification efforts. The analysts maintained their Sector Perform rating, but cut their price target to $13 from $16.
