Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/oscar-health-inc" target="_blank" data-smartkarma-citation="entities:31499:1" rel="noopener">Oscar Health (OSCR US)</a>  stock continued to trade lower and plunged ~58% from its IPO price of $39 per share. Company will release its second quarter results after market on Thursday, August 12, 2021. Currently, Oscar Health shares trade on multiples lower than its peers, such as <a href="https://www.smartkarma.com/entities/clover-health-investments-corp" target="_blank" data-smartkarma-citation="entities:33060:1" rel="noopener">Clover Health Investments Corp (CLOV US)</a> and <a href="https://www.smartkarma.com/entities/bright-health-group-inc" target="_blank" data-smartkarma-citation="entities:33507:1" rel="noopener">Bright Health Group (BHG US)</a> . Oscar Health completed IPO in March and lock-up agreements will expire on the second trading day immediately following the public release of earnings for the second quarter. Assuming stock price of $16.20 per share, Oscar Health has enterprise value (EV) of ~$1.06 billion and ~$2.3 billion of cash, cash equivalents and marketable securities. Keeping this in mind, company has raised a total of ~$1.6 billion from American leading investment and venture capital firms. We believe that Oscar Health is M&amp;A target and may be acquired by large managed healthcare and insurance corporation.

Oscar Health (OSCR US)  stock continued to trade lower and plunged ~58% from its IPO price of $39 per share. Company will release its second quarter results after market on Thursday, August 12, 2021. Currently, Oscar Health shares trade on multiples lower than its peers, such as Clover Health Investments Corp (CLOV US) and Bright Health Group (BHG US) . Oscar Health completed IPO in March and lock-up agreements will expire on the second trading day immediately following the public release of earnings for the second quarter. Assuming stock price of $16.20 per share, Oscar Health has enterprise value (EV) of ~$1.06 billion and ~$2.3 billion of cash, cash equivalents and marketable securities. Keeping this in mind, company has raised a total of ~$1.6 billion from American leading investment and venture capital firms. We believe that Oscar Health is M&amp;A target and may be acquired by large managed healthcare and insurance corporation.

Is Oscar Health M&A Target After The Shares Plunged More Than 50% Below IPO Price?

Equity Capital Markets

Bright Health Group / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/bright-health-group-inc" target="_blank" data-smartkarma-citation="entities:33507:1" rel="noopener">Bright Health Group (BHG US)</a> , healthcare and technology company integrating financing and care delivery, priced ~51 million shares at $18 per share, below the expected price range of $20-23 per share. Company sells health plans to seniors in MA, individuals, families and employers and has two connected businesses: NeueHealth and Bright HealthCare.J.P. Morgan, Goldman Sachs, Morgan Stanley and Barclays are lead underwriters on the IPO. Bright Health has raised ~$1.6 billion in funding over 5 rounds, according to Pitchbook and Crunchbase. Leading VC firms New Enterprise Associates, Bessemer Venture Partners and Greenspring Associates are majority stockholders and own 54% of total shares of common stock.

Bright Health Group (BHG US) , healthcare and technology company integrating financing and care delivery, priced ~51 million shares at $18 per share, below the expected price range of $20-23 per share. Company sells health plans to seniors in MA, individuals, families and employers and has two connected businesses: NeueHealth and Bright HealthCare.J.P. Morgan, Goldman Sachs, Morgan Stanley and Barclays are lead underwriters on the IPO. Bright Health has raised ~$1.6 billion in funding over 5 rounds, according to Pitchbook and Crunchbase. Leading VC firms New Enterprise Associates, Bessemer Venture Partners and Greenspring Associates are majority stockholders and own 54% of total shares of common stock.

Bright Health IPO: Strong M&A Growth Strategy and Limited Upside Potential

United States

Bright Health Group, Inc. provides health care services. The Company offers a digital health records platform to connect clinical, financial, and social data, to deliver exceptional outcomes. Bright Health Group operates in the United States.

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Bright Health Group (BHG US)

Is Oscar Health M&A Target After The Shares Plunged More Than 50% Below IPO Price?

We believe that investors underestimate technology component in Oscar Health’s valuation and insurtech may be M&A target for large insurance...

Andrei Zakharov

Bright Health IPO: Strong M&A Growth Strategy and Limited Upside Potential

We have positive view on Bright Health IPO. However, we see limited upside potential for shares of Bright Health and believe that IPO valuation...

Andrei Zakharov

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