Bernstein SocGen Group Downgrades agilon health Inc (AGL) to Market Perform

Bernstein SocGen Group analyst Lance Wilkes downgraded agilon health Inc (NYSE: AGL) from Outperform to Market Perform with a price target of $1.40 (from $4.00).

The analyst comments: "We are downgrading AGL to Market-Perform due to worse-than-expected margin pressures during 2024 and continued pressure during 2025. This pressure reduces the capital cushion of the company, increasing our view on the cost of capital.

AGL reported a disappointing quarter with medical margin of -$53M, driven primarily by lower-than-expected risk adjustment revenue as a result of pressures in ‘24/’25. A lower risk adjustment revenue baseline and withdrawn FY25 guidance pose cash flow uncertainty.

We still remain positive on the MA sector turnaround and its impacts on AGL, particularly the 5% MA rate increase for 2026, and we expect stable medical cost trends and improved contract pricing for 2026, but cash flow cushion and slower revenue growth are concerns as the company seeks to accelerate the medical cost turnaround."

For an analyst ratings summary and ratings history on agilon health Inc click here. For more ratings news on agilon health Inc click here.

Shares of agilon health Inc closed at $1.25 yesterday.

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