Agilon Health downgraded to Market Perform from Outperform at JMP Securities

JMP Securities analyst Constantine Davides downgraded Agilon Health (AGL) to Market Perform from Outperform without a price target following the Q3 report. While management is taking the necessary steps to optimize near-term profitability and cash flow, the Medicare Advantage backdrop “remains challenging and volatile,” hindering the company’s visibility and creating heightened risk around its ability to achieve cash flow positivity, the analyst tells investors in a research note. Given these near-term concerns, in combination with its more-tempered expectations with respect to the ultimate margin profile of Agilon’s model at scale, the firm downgraded the shares.