Alignment Healthcare falls after brokerage Piper Sandler downgrades to 'neutral'

Alignment Healthcare

06/03/2024 18:50

** Health insurer Alignment Healthcare's  ALHC.O  shares
fall 4.2% to $5.24 premarket
    ** Brokerage Piper Sandler cuts its rating on ALHC to
"neutral" from "overweight," lowers PT to $6 from $12   
    ** We downgrade ALHC following mixed Q4 results where
membership and revenue beat, but adjusted core profit missed the
low end of co's outlook - Piper Sandler
    ** ALHC forecast memberships for its health plan to grow 37%
in 2024
    ** Co forecast 2024 medical benefits ratio for its health
plan to be to be flat vs 2023, which assumes the tenured member
ratio will improve despite the shift in membership mix -
brokerage 
    ** Medical benefits ratio is the percentage of premiums
spent on medical care
    ** Stock down 31.1% in the last 12 months

 (Reporting by Puyaan Singh)
 ((Puyaan.Singh@thomsonreuters.com;))