Agilon Health price target raised to $3.15 from $2.50 at Bernstein

Bernstein analyst Lance Wilkes raised the firm’s price target on Agilon Health (AGL) to $3.15 from $2.50 on the back of higher MA rate, while keeping a Market Perform rating on the shares. The firm notes the company’s contracts are percentage of premiums, so higher rates would boost revenues and thereby lower MLR. Bernstein continues to like the long-term prospect for Agilon Health as it operates in the attractive VBC market. With that said, the firm remains on the sidelines as it continues to believe it is prudent to gain more conviction around the outlook for cash flow.