Analyst John Stansel of J.P. Morgan maintained a Buy rating on Alignment Healthcare, with a price target of $20.00.
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John Stansel has given his Buy rating due to a combination of factors that highlight Alignment Healthcare’s promising growth trajectory. The company is well-positioned to capitalize on the Medicare Advantage market, which is experiencing significant growth. ALHC’s differentiated approach to care and engagement has led to improvements in member cohort performance, supporting continued market share gains. Additionally, the company’s expansion outside of California is becoming a more substantial part of its enrollment, indicating a broader growth potential.
Furthermore, ALHC’s financial metrics are improving, with expectations of positive free cash flow and adjusted EBITDA growth. The company’s 100% 4+ star enrollment and favorable Medicare Advantage rate updates are expected to further enhance its margins and investment capabilities. Stansel’s confidence is also supported by ALHC’s strong care management approach, which is expected to drive margin improvements as recent cohorts mature. These factors collectively underpin the Overweight rating and the $20 price target set for December 2026.
Stansel covers the Healthcare sector, focusing on stocks such as Evolent Health, Centene, and Henry Schein. According to TipRanks, Stansel has an average return of -4.4% and a 40.00% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $21.00 price target.