Needham analyst Matthew Shea has reiterated their neutral stance on AGL stock, giving a Hold rating yesterday.
Matthew Shea has given his Hold rating due to a combination of factors, primarily driven by Agilon Health’s performance in the first quarter of FY25, which exceeded expectations in terms of revenue and adjusted EBITDA. Despite these positive results, there are concerns stemming from peer updates that question the sustainability of Agilon Health’s business model. The company managed to maintain its guidance and reaffirm its medical margin outlook, which is a positive sign amidst a challenging utilization environment.
However, Shea remains cautious about becoming more optimistic in the short term. This caution is due to uncertainties regarding how ongoing improvement efforts will affect the company’s full-year results, as well as a lack of clarity concerning the risk profile mix of the 2025 and 2026 cohorts as they approach FY26. As a result, Shea prefers to adopt a wait-and-see approach, maintaining a Hold rating until more definitive trends emerge.
According to TipRanks, Shea is a 2-star analyst with an average return of 1.1% and a 50.00% success rate. Shea covers the Healthcare sector, focusing on stocks such as Agilon Health, Evolent Health, and Privia Health Group.