Agilon Health initiated with a Neutral at Macquarie

Macquarie initiated coverage of Agilon Health (AGL) with a Neutral rating and $3 price target Agilon health is a pioneer of value-based care with sizable total addressable market and significant growth opportunities in Medicare, the analyst tells investors in a research note. While the company’s capital-light partnership model and self-reinforcing flywheel effect drive clinical improvements and support rapid growth and profitability, Agilon faces challenges from high healthcare utilization and adverse claims developments, which have impacted margins and delayed profitability, and its cash flow from operations has missed expectations, while capital market conditions remain unfavorable for a capital raise, the firm says.