In a report released on February 27, Whit Mayo from Leerink Partners reiterated a Buy rating on Alignment Healthcare (ALHC – Research Report), with a price target of $17.00.
Whit Mayo has given his Buy rating due to a combination of factors that highlight Alignment Healthcare’s strong performance and promising outlook. The company has demonstrated sector-leading medical expense management and has shown empirical evidence that utilization is not an issue, which underscores its operational efficiency. Additionally, Alignment Healthcare’s clinical care model has been effective in driving significant membership growth while maintaining a balanced cost trend, as evidenced by a nearly 59% year-over-year increase in Medicare Advantage membership and a modest growth in the medical loss ratio.
Furthermore, Alignment Healthcare is positioned for continued success in 2025, with a projected adjusted EBITDA significantly above consensus expectations. The company’s focus on cost management, member retention, and benefit design changes supports this positive outlook. Whit Mayo also notes the company’s idiosyncratic advantages, such as growth potential and competitive positioning, which are expected to drive further margin expansion and top-line growth. As a result, the price target has been raised to $17, reflecting confidence in the company’s future performance.
Mayo covers the Healthcare sector, focusing on stocks such as Pediatrix Medical Group, HCA Healthcare, and UnitedHealth. According to TipRanks, Mayo has an average return of 3.0% and a 48.13% success rate on recommended stocks.
In another report released on February 28, TD Cowen also maintained a Buy rating on the stock with a $17.00 price target.