Agilon Health downgraded to Hold from Buy at Truist

Truist downgraded Agilon Health to Hold from Buy with a price target of $10, down from $23. The analyst cites the company’s 2023 guidance cut and below-consensus outlook for 2024 issued last week, also stating that with Agilon Health having nearly complete visibility only through Q2 and applying a lower medical margin assumption for its second half results which it flowed through to 2024, it remains to be seen if its complete data is sufficient to appropriately gauge its potential 2024 performance. Truist adds that while the company remains highly confident, its expectations for lower medical margin over the long term could hurt its ability to attract more providers.