Industry OutlookThe 2026 MA rate was announced at +2.23%, which was higher than expected and is a positive development for the MA industry, potentially benefiting risk-bearing VBC names like Agilon Health.
Membership GrowthMA membership grew 37% year-over-year, surpassing estimates and guidance with strong same geography growth.
Price TargetThe price target for Agilon Health is raised to $3.15 due to higher MA rates, which are expected to boost revenues and lower medical loss ratios.