Agilon Health downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank downgraded Agilon Health to Hold from Buy with a price target of $12, down from $27. Following the “messy” Q3 results, the analyst now has less confidence in Agilon’s ability to hit its medium term earnings targets. Investors are increasingly focused on earnings power as utilization rises, benefits remain rich and v28 of the risk model poses challenges in 2024 and 2025, the analyst tells investors in a research note. To that end, the firm finds the company’s guidance targets as “overly optimistic as it relates to medical margin.” Deutsche views Agilon Health shares as “fairly to richly valued.”