eHealth (EHTH) has introduced a "prudent" three-year financial plan that should lead to mid-teens percentage growth in 2028,

RBC Capital Markets said in a Thursday report.

"We view 2026 as a purposeful bridge year, with the company intentionally pulling back on marketing spend to prioritize cash flow generation and operational restructuring," the report said.

The plan includes targets for mid-single digit revenue growth in 2027, driven by Medicare agency business and contribution from ancillary cross-selling with the lifetime advisory model, it said.

"While valuations sector-wide remain depressed following

persistency headwinds and muted cash flow conversion, we are encouraged by the relative resiliency of eHealth's receivables," the note said.

RBC kept its sector perform rating and $3 price target.

Price: 1.75, Change: -0.03, Percent Change: -1.97