Analyst Ryan Langston of TD Cowen maintained a Hold rating on Agilon Health (AGL – Research Report), boosting the price target to $6.00.
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Ryan Langston has given his Hold rating due to a combination of factors related to Agilon Health’s financial outlook and market conditions. The analyst has updated the financial model for Agilon Health, maintaining largely unchanged EBITDA estimates for the fiscal years 2025 and 2026, indicating a cautious approach to the company’s profitability prospects. While there is a slight increase in the revenue estimate for 2026, this is primarily due to new membership arrangements that come with lower care management fees and no downside risk, which suggests a conservative revenue growth expectation.
Furthermore, the price target has been adjusted from $3.50 to $6.00, reflecting a valuation based on 0.4 times the projected sales for 2026. This adjustment indicates a modestly positive outlook but not enough to warrant a more optimistic rating. The Hold rating reflects a balanced view, acknowledging potential growth from new memberships while also considering the financial challenges and risks that remain. Overall, the rating suggests that investors should maintain their current positions without aggressive buying or selling.
In another report released today, Robert W. Baird also downgraded the stock to a Hold with a $5.00 price target.