BHG - Clover Health gains as Cowen upgrade more than doubling the price target

Clover Health Investments (CLOV +4.1%) has extended gains for the fourth straight session after Cowen upgraded the health insurer to Market Perform from Underperform, noting the weakness in company shares. The price target raised to $7 from $3 per share implies a premium of ~151% to the last close. The analyst Gary Taylor notes that Clover (NASDAQ:CLOV) has lost about 70% since the completion of its merger with Chamath Palihapitiya-backed SPAC Social Capital Hedosophia last year. The decline is material, Taylor argues, comparing stock’s underperformance to the firm’s coverage universe and some of Clover’s competitors, such as Alignment Healthcare (NASDAQ:ALHC) and Bright Health (NYSE:BHG). “We believe most negative near-term catalysts are reflected in the share price,” the analyst wrote as the reason for the upgrade. However, he flagged concerns over the company’s near-term liquidity and long-term profitability. Meanwhile, Canaccord Genuity has initiated the coverage on Clover (CLOV) with a Buy recommendation

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Clover Health gains as Cowen upgrade more than doubling the price target