GoHealth's shares drop as costs weigh on Q2 profit

GoHealth

12/08/2021 14:13

** Shares of online health insurance broker  GOCO.O  drop
15% to $6.97 premarket, after missing analysts' expectations for
Q2 EBITDA 
    ** Multiple brokerages including Credit Suisse, Evercore ISI
and Raymond James cut their ratings on co's stock to "neutral"
or equivalent; several brokerages cut PTs
    ** Evercore ISI says higher customer care and enrollment
costs along with general expenses depressed co's EBITDA
    ** This factor, combined with a broader lack of visibility
into the company's outlook have caused us to become less
constructive - Evercore 
    ** While tight labor markets and investments are pressuring
margins, the company has clearly chosen to focus on longer-term
growth at the expense of near-term profitability - Cantor
Fitzgerald 
    ** Up to Wednesday's close, stock had fallen nearly 40% YTD

 (Reporting by Manas Mishra in Bengaluru)
 ((Manas.Mishra@thomsonreuters.com;
www.twitter.com/Manasmishra24))