Needham analyst Matthew Shea has reiterated their neutral stance on AGL stock, giving a Hold rating today.
Matthew Shea’s rating is based on a combination of factors influencing Agilon Health’s financial outlook. The company is facing challenges related to Part D risk and the use of supplemental benefits, which have impacted its profitability. In response, management is taking strategic steps to adjust the business model, such as reducing the number of new partners for 2025 and decreasing exposure to Part D in their Medicare Advantage offerings.
These adjustments are aimed at stabilizing earnings, but they have also led to a lower membership forecast for the fiscal year 2025, resulting in revenue projections that fall below market expectations, even though EBITDA is in line with consensus. While these strategic moves are seen as sensible, the tangible outcomes of these efforts are yet to be reflected in the company’s financial performance, prompting the Hold rating as the analyst awaits clearer evidence of success.
Shea covers the Healthcare sector, focusing on stocks such as Evolent Health, Agilon Health, and Privia Health Group. According to TipRanks, Shea has an average return of 0.2% and a 66.67% success rate on recommended stocks.