Apollo Medical initiated with a Buy at Stifel

Stifel initiated coverage of Apollo Medical with a Buy rating and $45 price target. Apollo has acquired the necessary licenses to take full risk on its Medicare and Medicaid patients via two recent acquisitions, which should allow it to double its average PMPMs in both Medicare and Medicaid and a transition to full risk over the next three years and should drive a total of 60-plus points of growth, the analyst tells investors. Apollo’s “secret sauce” for why it can manage care profitably involves both its technology stack and its health services team, the analyst added.