Benchmark starts Agilon Health with a Buy, $28 price target

Benchmark initiated coverage of Agilon Health with a Buy rating and $28 price target. Agilon enables independent physicians to transition their Medicare Advantage patients to a total risk model with multiple payers by establishing partnerships with physician groups and providing the platform and multi-payor relationships for a split of the savings achieved under the global capitation contracts, the analyst explains. The company has built “a model engineered for rapid growth with multi-year visibility,” says the analyst, who sees upside to current valuation on both a comparable and DCF basis given the model’s “high visibility.”