Agilon Health downgraded to Hold from Buy at Jefferies

Jefferies downgraded Agilon Health to Hold from Buy with a price target of $6.50, down from $25, following a change in analyst coverage. The firm’s long-term conviction in the value-based care opportunity remains intact due to low penetration, payor and government focus on transitioning to value-based frameworks, and an unchanged underlying need for better and lower cost healthcare. However, the analyst is “realistic on near-term headwinds” facing the Medicare Advantage space and says challenges in the public value-based care world “warrant a more selective stance.”