UBS Starts Alignment Healthcare Inc (ALHC) at Neutral

UBS analyst Kevin Caliendo initiates coverage on Alignment Healthcare Inc (NASDAQ: ALHC) with a Neutral rating and a price target of $28.00.

The analyst comments "We are positive on impressive membership uptake in a fast-growing space, experienced leadership, and a distinct market strategy. With 3% Medicare Advantage (MA) share in its overall markets, we think there is meaningful opportunity within ALHC's existing footprint. Market expansion starting in '22, growing appeal of newer offerings and potential M&A offer upside. Yet, we see risks: intense MA competition; potential for MA cuts in '23; elevated post-COVID utilization; and market expansion. Coupled with the shares' premium valuation on an EV/sales and EV/member vs. even tech-enabled peers, we view the risk/reward as balanced. We would be incrementally constructive on stronger organic membership growth; better management of cost; and accretive M&A."

For an analyst ratings summary and ratings history on Alignment Healthcare Inc click here. For more ratings news on Alignment Healthcare Inc click here.

Shares of Alignment Healthcare Inc closed at $25.13 yesterday.

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