Agilon Health initiated with a Market Perform at Bernstein

Bernstein analyst Lance Wilkes initiated coverage of Agilon Health (AGL) with a Market Perform rating and $2.50 price target The company has enjoyed strong growth in recent years, but this “remarkable growth” has pressured cash flow, leading the stock to be down 80% year-to-date, the analyst tells investors in a research note. In light of recent cuts in guidance, the firm believes the biggest near term risk is further deterioration in cash flow driven by higher than expected medical costs, which would bring into focus capital raise as a key risk for the stock.