Agilon Health upgraded to Buy from Neutral at Citi

Citi upgraded Agilon Health (AGL) to Buy from Neutral with a price target of $5, up from $3.25. The company has done an “admirable job” reducing risk in 2025 and should see accelerated margin improvement in 2026 and 2027 given the better than anticipated 2026 final rate notice, the analyst tells investors in a research note. The firm thinks the stock’s 30% selloff post UnitedHealth (UNH) earnings is overdone as its recent conversation with Aledade co-Founder and CEO Farzad Mostashari gives it confidence that the magnitude of the company’s issues are largely idiosyncratic to its Optum strategy. Agilon has a better field of vision to properly manage risk across plans when there is significant switching among the national insurers, contends Citi.