Wells Fargo analyst Stephen Baxter maintained a Buy rating on Agilon Health (AGL – Research Report) yesterday and set a price target of $5.00.
Stephen Baxter has given his Buy rating due to a combination of factors including Agilon Health’s strategic focus on stabilizing results and improving Medicare Advantage (MA) reimbursement rates. Despite a challenging year, the company’s Q4 results showed a modest improvement over expectations, suggesting potential for future growth.
Additionally, Baxter is encouraged by Agilon Health’s conservative guidance and efforts to manage uncontrollable risks associated with Part D and supplemental benefits. The company’s decision to scale back MA growth in 2025 to focus on profitable, measured expansion further supports this positive outlook. Baxter’s unchanged price target of $5 reflects a balanced evaluation using EV/EBITDA and DCF approaches, indicating confidence in Agilon Health’s ability to achieve favorable earnings and multiple revisions in the future.
According to TipRanks, Baxter is a 2-star analyst with an average return of 0.2% and a 37.96% success rate. Baxter covers the Healthcare sector, focusing on stocks such as Cardinal Health, Centene, and CVS Health.
In another report released on February 27, Benchmark Co. also reiterated a Buy rating on the stock with a $4.00 price target.