GoHealth stock price target lowered to $12 from $18 at RBC Capital

Investing.com - RBC Capital has lowered its price target on GoHealth Inc. (NASDAQ:GOCO) to $12.00 from $18.00 while maintaining a Sector Perform rating on the stock. According to InvestingPro data, the stock currently trades at $5.33, with a concerning YTD decline of over 60%.

The price target reduction follows GoHealth’s second quarter results and recent credit transactions that RBC Capital notes have improved the company’s liquidity position. InvestingPro analysis shows the company maintains a current ratio of 1.56, indicating liquid assets exceed short-term obligations, though the company’s overall financial health score remains fair at 1.81 out of 5.

RBC Capital analyst Ben Hendrix indicated that the new term loan enhances GoHealth’s flexibility ahead of the Annual Enrollment Period (AEP) and increases capacity for potential merger and acquisition activities.

The analyst’s comments came as a follow-up to RBC Capital’s August 7 Quick Take note on the company, with the firm updating its financial model and providing additional commentary on second quarter performance.

The price target adjustment reflects RBC Capital’s valuation roll to next year, though the firm has chosen to maintain its Sector Perform rating on GoHealth stock.

In other recent news, GoHealth reported its Q2 2025 earnings, highlighting strategic capital actions and product diversification efforts. The company introduced the GoHealthProtect final expense product and decided to reduce its focus on the Medicare Advantage market. Following these developments, RBC Capital adjusted its price target for GoHealth, lowering it from $18 to $12, while maintaining a Sector Perform rating. This adjustment was made in light of GoHealth’s second-quarter results and recent credit transactions, which are expected to improve the company’s financial flexibility ahead of the Annual Enrollment Period. These recent developments reflect the company’s efforts to navigate market challenges and strategically shift its focus. RBC Capital’s analysis suggests that these moves could position GoHealth more favorably in the coming months. Investors are closely watching how these strategic changes will impact GoHealth’s performance in the future.

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