SunTrust analyst Tobey Sommer raised his price target on eHealth to $120 and kept his Buy rating, saying the stock has become his “favorite small cap idea” coming out of last week’s Investor Day. The analyst says the “Tailwind+” outcome from the company’s presentation is likely, generating $1.35B in revenue and $540M in EBITDA from its improvement in constrained lifetime value and average Medicare Advantage policy life going from 3 to about 4 years. Sommer also believes that the Medicare Advantage market is set to growth about 56% over the decade from 2016 levels, and eHealth stands to benefit as the “only consumer-focused online comparison shopping platform.”
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