eHealth, Inc. (EHTH) PT Slashed From $9 to $3 at RBC Amid Softer 2026 Outlook

Core Viewpoint - eHealth, Inc. (NASDAQ:EHTH) is identified as one of the most oversold insurance stocks, with a significant reduction in its price target by RBC Capital from $9 to $3, despite strong fourth-quarter results [1][2][8]. Financial Performance - For the fourth quarter of 2025, eHealth reported sales of $326.2 million, reflecting a 4% year-over-year increase [3]. - The total revenue for the fiscal year 2025 reached $554 million, also a 4% increase compared to 2024 [3]. - The company's GAAP net income for the fourth quarter decreased to $87.2 million from $97.5 million a year earlier, primarily due to a higher effective tax rate [4]. - Adjusted EBITDA increased by 10% to $132.9 million, attributed to improved Medicare unit economics and cost control initiatives [4]. Future Outlook - eHealth projects total revenue for 2026 to be between $405 million and $445 million, alongside ongoing efforts to enhance efficiency and profitability [5]. - The outlook for 2026 has been negatively impacted by lower-than-expected revenue expectations, driven by conservative forecasts for the annual enrollment cycle and reduced marketing investments from a major Medicare Advantage insurer [2].