Alignment Healthcare downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Alignment Healthcare to Neutral from Overweight with a price target of $12, down from $22. The firm believes the managed care group remains fundamentally well positioned coming out of Q4 but adjusted multiples and ratings across the sector to reflect valuations more in-line with historical levels. In addition, the near-term Medicare Advantage rate outlook is disappointing with the Centers for Medicare and Medicaid Services announcing a 2% preliminary rate cut next year versus the market’s expectation for an increase in the range of 0%-2%, the analyst tells investors in a research note.