Analyst Bill Sutherland from Benchmark Co. reiterated a Buy rating on Agilon Health and keeping the price target at $1.50.
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Bill Sutherland has given his Buy rating due to a combination of factors that suggest a positive outlook for Agilon Health. One key reason is the anticipated improvement in macroeconomic conditions by 2026, including a significant increase in Medicare Advantage rates, which is expected to benefit the company. Additionally, Agilon Health’s management is taking proactive steps to enhance contract economics and data visibility, which are crucial for better forecasting accuracy and operational efficiency.
Furthermore, the company is focusing on improving its burden-of-illness program, targeting high-cost care areas such as CHF, COPD, and dementia, which should lead to better management of inpatient utilization. The emphasis on chronic disease management and the rollout of new programs are expected to align with payer goals and improve quality scores. Lastly, Agilon Health is working on reducing operating expenses, which should become more apparent in 2026, making the current valuation attractive given these developments.
According to TipRanks, Sutherland is an analyst with an average return of -2.7% and a 42.11% success rate. Sutherland covers the Healthcare sector, focusing on stocks such as AMN Healthcare Services, Cross Country Healthcare, and Healthcare Services.