As previously reported, Piper Sandler upgraded Alignment Healthcare to Overweight from Neutral with a price target of $8, up from $6, following strong Q1 results and a 2024 guidance revision that raises implied MLR to achievable levels. Executive comp changes detailed in the proxy could propel Alignment to 4.5 stars or better this October, which would be a positive catalyst, Piper adds. The company is targeting adjusted EBITDA breakeven in 2024, and the firm believes funding idiosyncrasies and a pause on new market entry in 2025 will support year-over-year margin expansion.
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