Stifel initiates coverage of agilon health with 'buy', shares rise

Agilon Health

09/12/2022 16:51

** Shares of agilon health Inc  AGL.N  rise 2.7% to $17.79
    ** Brokerage Stifel initiates coverage for the healthcare
firm with "buy" rating, says co enables primary care provider
groups to transition from fee-for-service healthcare to
value-based care
    ** Stifel sets PT of $23 and estimates AGL can increase a
provider groups' total revenue per primary care physician by
~$50,000 in one year to more than $180,000 by the fourth year
    ** Brokerage sees growth of 51% in 2023 and 35% in 2024
    ** Stifel says in order to achieve brokerage's growth
estimates, co would only need to add ~75,000 new members
annually, which AGL has line of sight to add on Jan 1, 2023 
    ** In fee-to-service healthcare, reimbursements are based on
the services provided by the healthcare organization where as in
value-based care, reimbursement depends upon the quality of the
care provided
    ** Fifteen of 16 brokerages rate the stock "buy" or higher,
one "hold"; their median PT is $28.50
    ** Despite session's gains, stock down ~34% YTD
 (Reporting by Sriparna Roy)
 ((Sriparna.Roy@thomsonreuters.com;))