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Investing.com - Goldman Sachs raised its price target on Alignment Healthcare Inc (NASDAQ:ALHC) to $22.00 from $21.00 while maintaining a Buy rating following the company’s strong third-quarter performance. The new target represents a 30% upside from the current price of $16.86, with analyst targets ranging from $17 to $25, according to InvestingPro data.
The healthcare company reported third-quarter 2025 adjusted EBITDA of $32.4 million, significantly exceeding Goldman Sachs and consensus estimates of $12.4 million and $12.0 million, respectively. The outperformance was attributed to stronger revenue and margins. ALHC has demonstrated impressive revenue growth of 47.4% over the last twelve months, with EBITDA reaching $36.1 million for the period.
Alignment Healthcare’s adjusted medical loss ratio (MLR) came in at 87.2%, which was 140 basis points better than the 88.6% expected by analysts. The favorable MLR was supported by strong per-member-per-month pricing yields, inpatient admissions remaining in the low 140s, and Part D costs tracking favorably.
The company now expects its adjusted MLR for full-year 2025 to improve by approximately 90 basis points to 87.9% from 88.8% in 2024. For 2026, Alignment Healthcare remains confident in delivering over 20% annual Medicare Advantage enrollment growth while driving further margin expansion.
Goldman Sachs noted that Alignment Healthcare has demonstrated "distinctive outperformance" during the Medicare Advantage underwriting cycle downturn, delivering the fastest enrollment growth across all public managed care organization peers while accelerating margin improvement.
In other recent news, Alignment Healthcare LLC reported its Q3 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.02, while analysts had anticipated a loss of $0.08. The company’s revenue also came in slightly higher than expected, reaching $994 million compared to the forecasted $981.34 million. These results highlight the company’s ability to outperform analyst projections. Despite the positive earnings surprise, the stock experienced a decline in aftermarket trading. Analysts from various firms have been evaluating the company’s performance, though specific upgrades or downgrades were not mentioned. This development reflects recent trends and investor reactions to the company’s financial results.
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