Alignment Healthcare initiated with an Equal Weight at Stephens

Stephens initiated coverage of Alignment Healthcare with an Equal Weight rating and $9 price target. Alignment offers growth-oriented small cap investors pure-play exposure to Medicare Advantage, which the firm calls “the key secular driver” of long-term growth in Managed Care. However, Alignment has not yet achieved adjusted EBITDA profitability and the Medicare Advantage market will face the “toughest reimbursement environment seen in many years in 2024,” the analyst tells investors.