Barclays raises Omada Health PT to $24, maintains Overweight rating.

Barclays raises Omada Health PT to $24, maintains Overweight rating.

Barclays has raised its price target for Omada Health, Inc. (NASDAQ: OMDA) to $24, maintaining its Overweight rating. This move follows the company's strong second-quarter earnings report, which saw a 49% year-over-year (YoY) revenue growth to $61 million [2].

Omada Health's second-quarter results were bolstered by a 52% increase in total members to 752,000, driven by its GLP-1 companion programs, which are now available through two of the largest pharmacy benefit managers in the United States [2]. The company's gross margin improved to 66%, up from 60% in the previous year, while the non-GAAP gross margin stood at 68% [2].

The company's CEO, Sean Duffy, expressed pride in the second-quarter performance, attributing it to the company's ability to capture tailwinds in cardiometabolic care, effectively commercialize its GLP-1 Care Track, and leverage advances in artificial intelligence for the benefit of its members [2].

Barclays analysts cited Omada Health's strong revenue growth and progress towards profitability as key factors in raising the price target. The investment bank expects Omada's revenue to range between $235 million to $241 million for the year ending December 31, 2025 [2].

Despite the positive outlook, investors should be aware of the risks associated with Omada Health's forward-looking statements, which include the company's limited operating history, history of net losses, and dependence on a limited number of customers and channel partners [2].

References:
[1] https://seekingalpha.com/news/4482026-omada-health-inc-gaap-eps-of-0_24-beats-by-0_05-revenue-of-61m-beats-by-5_55m
[2] https://www.marketscreener.com/news/omada-health-reports-second-quarter-2025-results-ce7c5edcd98af420