BHG - Bright Health extends losing streak after drawing another downgrade

The shares of Bright Health Group (BHG -11.3%) are set to decline for the third straight session after Cowen lowered its rating on the stock, close on the heels of another downgrade from Citi. Cowen’s Gary Taylor and Christian Borgmeyer cut their recommendation on Bright Health (NYSE:BHG) to Market Perform from Outperform with the price target adjusted to $9 from $14 to indicate a premium of only ~5.9% to the last close. The analysts cite several concerns hurting the company, including a short-term risk in medical loss ratio and rising competition in 2022 ACA. The duo observes that several companies have so far flagged a rise in ACA loss ratios “related to direct COVID costs, deferred care and adverse selection from the 2021 special enrollment period.” That has prompted them to warn that Bright Health (BHG) is on track to report a lower than expected medical loss ratio for the second

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Bright Health extends losing streak after drawing another downgrade