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Alignment Healthcare’s Strong Q1 2025 Performance and Positive Outlook Justify Buy Rating

William Blair analyst Ryan Daniels has reiterated their bullish stance on ALHC stock, giving a Buy rating on April 15.

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Ryan Daniels has given his Buy rating due to a combination of factors that highlight Alignment Healthcare’s strong financial performance and positive outlook. The company exceeded expectations in the first quarter of 2025, with revenue surpassing the Street target, largely due to better-than-expected health plan membership numbers. Additionally, the medical benefit ratio was more favorable than anticipated, indicating effective control over medical expenses.
Furthermore, the company demonstrated significant operating efficiency, as evidenced by the adjusted EBITDA greatly exceeding consensus estimates. This financial strength was complemented by an upward revision in the 2025 guidance for key metrics such as membership, revenue, and adjusted gross profit. Despite a transition in the CFO position, the company’s solid start to the year and improved operating outlook suggest a stable and promising growth trajectory, justifying the Buy recommendation.

According to TipRanks, Daniels is a 4-star analyst with an average return of 6.8% and a 46.79% success rate. Daniels covers the Healthcare sector, focusing on stocks such as Encompass Health, Health Catalyst, and HealthStream.

In another report released on April 15, Robert W. Baird also maintained a Buy rating on the stock with a $22.00 price target.

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