agilon cut to sell at Citi on Medicare headwinds
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Contributor since / Followers
Contributor since / Followers
3 weeks ago
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- Shares of agilon health (NYSE:AGL) traded lower on Wednesday after Citi downgraded the value-based care provider to Sell from Neutral, citing headwinds in the Medicare Advantage market ahead of its Q3 2024 results next week.
- Additionally, Citi lowered its price target on AGL to $2.50 from $7.00 per share, noting uncertainty about the company’s ability to control MA costs and renegotiate MA contracts.
- Citi pointed to recent commentary from managed care organizations as reasons for its view on MA the market.
- From UnitedHealth (UNH) to Humana (HUM), managed care organizations have cited pressure in their MA businesses in recent weeks, with issues ranging from higher-than-expected medical costs to unexpected declines in Medicare Star Ratings.
- Agilon (NYSE:AGL) is scheduled to report Q3 2024 results on Nov. 7 after the market close.