NEW YORK (TheStreet) -- eHealth (EHTH) shares are falling steeply, down -13.2% to $33.84, on Tuesday after being downgraded to "hold" from "buy" by analysts at Jefferies (JEF).
The firm also slashed its price target down to $40 from $62 in a note released today.
The firm had rated the company a "buy" based on the idea that it would make $100 million annually by 2017 selling subsidized health insurance, but analysts changed their mind about the viability of that following comments made by management at a Jefferies conference.
TheStreet Ratings team rates EHEALTH INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EHEALTH INC (EHTH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."