Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Master High-Probability Trades! | Tuesday, March 21, 2023 | 11:00AM PST Enroll Now
Stifel positive on agilon health despite recent Citron short report
© Reuters. Stifel positive on Agilon Health (AGL) despite recent Citron short report
By Sam Boughedda
agilon health Inc (NYSE:AGL) was initiated with a Buy rating and $23 per share price target at Stifel on Friday.
The Buy rating comes not long after short-selling investment research firm Citron released a report criticizing the company, stating "the best days of Agilon are behind it," and the firm "unknowingly got torpedoed" by the U.S. Supreme Court without Wall Street noticing.
However, Stifel analysts told investors in a note that they "estimate agilon can increase a provider groups' total revenue per PCP by ~$50,000 in year 1 to $180,000+ by year 4."
"Large TAM/Low Penetration. agilon has a large $125 billion MA TAM growing close to 10% per year and a $158 billion DC TAM, which we expect to remain largely flat. agilon only has 2% market share in MA and less than 1% of the potential DC market," wrote the analysts. "agilon grew 51% in 2021, and guided to 46% growth in 2022. We are projecting growth of 51% in 2023 and 35% in 2024, both ahead of consensus."
However, Stifel believes the estimates are "reasonable to conservative," as U.S. MA member growth grows close to 10% and "capitated PMPM pricing grows by mid-single digits."
"agilon offers relatively high exposure to the U.S. healthcare transition to value-based care on a platform model that is very capex and opex light. We expect agilon to continue to grow 30%+ in the medium term while expanding margins and to begin generating cash in 2023, with $1 billion in cash and no debt on the balance sheet," they concluded.
agilon shares are up 1% at the time of writing.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.