William Blair analyst Ryan Daniels has maintained their neutral stance on AGL stock, giving a Hold rating on April 28.
Ryan Daniels has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Agilon Health. The company reported better-than-expected results for the first quarter of 2025, with sales and adjusted EBITDA surpassing forecasts. Additionally, the number of Medicare Advantage and ACO model members was within the anticipated range, indicating stable membership growth.
Despite these positive indicators, Daniels remains cautious due to the continuation of elevated cost trends, which have been a significant concern for Medicare Advantage plans and value-based care operators. Although there are signs of stabilization in MA utilization and a potential improvement in the rate environment in the coming years, these factors still pose a risk to the company’s financial performance. Furthermore, while Agilon Health has reduced its Part D exposure and shifted some contracts to care coordination fees, these changes are still in progress, warranting a Hold rating until more consistent improvements are observed.
Daniels covers the Healthcare sector, focusing on stocks such as Encompass Health, HealthStream, and Health Catalyst. According to TipRanks, Daniels has an average return of 7.7% and a 49.56% success rate on recommended stocks.