Oscar Health's (OSCR) 2029 EPS target of over $4 is achievable, given its ability to execute on margin improvement, but it will ultimately depend on a rebound in Affordable Care Act exchange enrollment, Bank of America Securities said in a Thursday research report.

The company expects ACA exchange enrollment to stabilize at around 17 million in 2027.

BofA said Oscar Health views the 3.4 million new exchange members in 2026 as supporting its expectation that growth in the gig workforce, AI-driven labor-pool shifts and immigration will restart high-single-digit net membership growth from 2028, analysts wrote.

However, the brokerage said the company's ACA membership growth outlook appears aggressive, and it expects a modest decline in 2027, as well as minimal growth through 2029.

The brokerage said it reiterated its underperform rating on the stock and raised its price target to $30 per share from $28.

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