02:02 PM EDT, 10/07/2024 (MT Newswires) -- Clover Health Investments ( CLOV ) is "fully valued" after "a good job" improving core operations and medical costs, UBS Securities said Monday in a report initiating coverage of the company with a neutral rating.

Clover Health's Medicare Advantage star rating rose to 4.0 from 3.5, according to preliminary data indicated by the Centers for Medicare & Medicaid Services, boosting prospect for enrollment and revenue growth, UBS said.

In 2025, UBS projects revenue of $1.6 billion with $1.8 billion in 2026 with enrollment growth of 10% next year and 8% in 2026. "While positive on the company's trajectory and improvement, we see this as appropriately captured in the stock price today," the report said.

Clover Health's enrollment growth in its key state of New Jersey showed the company is only outperforming the market in a few core counties while lagging behind in most others, posing a near-term "headwind" to growth, UBS said.

UBS has a price target of $4 on Clover Health.

Shares of Clover Health slumped 8.8% in recent trading Monday.

Price: 3.6850, Change: -0.3550, Percent Change: -8.7871