Agilon Health downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Agilon Health (AGL) to Underweight from Neutral with an unchanged price target of $21. The firm believes it will take several quarters for investors to confidently underwrite a material out-year earnings ramp for Agilon. Beyond the “overhangs” from an uncertain recovery timeline as well as nearly 25% sponsor ownership, optimism in the company’s execution ability is likely reflected at the current valuation, the analyst tells investors in a research note. JPMorgan expects the shares to remain range-bound as investors seeking Medicare Advantage exposure “will look to other names with a cleaner narrative.”