Analyst Ryan Langston of TD Cowen maintained a Buy rating on Alignment Healthcare, boosting the price target to $18.50.
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Ryan Langston has given his Buy rating due to a combination of factors, including the company’s consistent upward revision of its EBITDA guidance for the fourth consecutive quarter. Management’s confidence in achieving at least 20% growth in both enrollment and adjusted EBITDA by 2026 further supports this positive outlook.
Additionally, the company’s strategic approach to balancing membership growth with profitability, along with stable to modestly down benefits across products, aligns with its growth objectives. The focus on tuck-in opportunities in mergers and acquisitions, particularly in enhancing ancillary network capabilities, also adds to the company’s potential for future growth. These factors, combined with an increased price target of $18.50, reflecting a valuation of 0.8x 2026 estimated enterprise value to revenue, underpin Langston’s Buy rating.
Langston covers the Healthcare sector, focusing on stocks such as UnitedHealth, Elevance Health, and Molina Healthcare. According to TipRanks, Langston has an average return of -4.8% and a 43.75% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $21.00 price target.