Agilon Health (AGL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Stephen Baxter from Wells Fargo maintained a Buy rating on the stock and has a $5.00 price target.
Stephen Baxter has given his Buy rating due to a combination of factors that suggest potential for improvement and growth for Agilon Health. Despite recent challenges and uncertainties, the company’s EBITDA guidance for 2025 is slightly above consensus estimates, indicating a positive outlook. The revenue for the fourth quarter was in line with expectations, and the medical margin showed some improvement over Wells Fargo’s estimates, reflecting a potential for better financial performance.
Additionally, Agilon Health’s strategic focus on reducing underwriting exposure and maintaining operational discipline suggests a prudent approach to navigating market challenges. The company plans to improve its medical margin and adjusted EBITDA loss in 2025, which aligns with its goal of achieving breakeven cash flow by 2027. These efforts, coupled with a focus on strengthening clinical and operational capabilities, support the Buy rating as they indicate a commitment to sustainable growth and profitability.
According to TipRanks, Baxter is a 2-star analyst with an average return of 0.6% and a 37.62% success rate. Baxter covers the Healthcare sector, focusing on stocks such as Cardinal Health, UnitedHealth, and Centene.