Whit Mayo, an analyst from Leerink Partners, reiterated the Hold rating on Agilon Health. The associated price target was lowered to $1.50.
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Whit Mayo has given his Hold rating due to a combination of factors affecting Agilon Health’s financial outlook. The company has faced persistent challenges, including negative reserve development over the past three years and unexpected reductions in risk adjustment factors (RAF) for 2024, which significantly impact the earnings baseline for 2025. Additionally, Agilon Health lacks comprehensive RAF data for a significant portion of its membership, which raises concerns about potential further headwinds.
Moreover, the company’s ability to forecast its business remains uncertain, exacerbated by unfavorable prior year developments and poor visibility into its operations. Despite claims that medical cost trends align with expectations, there is insufficient data to confirm this. The suspension of the 2025 guidance following the CEO’s departure further complicates the outlook. While Agilon Health is taking steps to improve visibility through technology and data advancements, the benefits of these efforts are not anticipated until 2026.
In another report released today, TD Cowen also reiterated a Hold rating on the stock with a $1.00 price target.
AGL’s price has also changed dramatically for the past six months – from $3.500 to $0.880, which is a -74.86% drop .