Agilon Health initiated with an In Line at Evercore ISI

Evercore ISI initiated coverage of Agilon Health (AGL) with an In Line rating and $22.50 price target. Value-based care “continues its march forward,” and has been accelerated in some ways by M&A from large well-funded operators such as CVS Health (CVS) buying Oak Street Health (OSH) and Amazon (AMZN) buying 1Life (ONEM), the analyst tells investors. While Agilon remains “one of the few independent leaders trading at a meaningful premium to its peers” and the firm agrees with the Street view that it is well positioned to continue to expand, Evercore is “more skeptical” on a margin ramp over the coming years and also cites near-term headwinds adding hurdles to an “already high variable cost model.”