Investing.com - Raymond James downgraded Oscar Health Inc (NYSE: OSCR ) stock rating to Market Perform from Outperform on Tuesday. The downgrade follows a significant rally of approximately 45% in Oscar Health shares over the past week.

The price surge was attributed to language changes to the Affordable Care Act in the Senate reconciliation package and what Raymond James described as "meme stock fervor online." The firm now believes the risk/reward profile for Oscar Health has become more balanced following this rapid appreciation in share price.

Raymond James cited a less constructive policy and fundamental environment that creates "a tougher set up for the stock over the medium term." The firm expressed concerns about market dynamics that will be challenging to navigate over the next 12-18 months.

Despite the downgrade, Raymond James maintained a positive view of Oscar Health’s leadership, stating it continues to view the management team as "top tier" in its coverage universe. The firm’s rating change appears focused on valuation and external factors rather than company-specific operational concerns.

Oscar Health, a technology-focused health insurance company, has experienced significant stock volatility in recent trading sessions as investors responded to potential regulatory changes affecting the health insurance marketplace.

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