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Investing.com - Barclays (LON:BARC) has lowered its price target on agilon health Inc (NYSE:AGL) to $1.50 from $3.00 while maintaining an Underweight rating following the company’s disappointing second-quarter results. The healthcare company, currently valued at $751 million, has seen its stock decline over 71% in the past year.
The healthcare company pre-announced its second-quarter 2025 results a day early, reporting significant misses across revenue, medical margin, and EBITDA. According to Barclays, agilon health missed revenue expectations by $75 million, fell short on medical margin by $111 million, and missed EBITDA projections by $55 million. InvestingPro data reveals the company’s struggles with profitability, showing negative gross profit margins and eight analyst downward revisions for the upcoming period.
In conjunction with the disappointing results, agilon health has withdrawn its full-year 2025 guidance, creating additional uncertainty for investors. The company also announced that CEO Steven Sell has stepped down from his position, with co-founder Ronald Williams assuming CEO responsibilities as Executive Chairman while the board searches for a permanent replacement. Despite these challenges, InvestingPro analysis suggests the stock is trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report.
Barclays noted that this development represents "the latest revision and executive replacement in a string of negative managed care updates this earnings season." The firm highlighted that these changes underscore the lack of visibility into claims and risk adjustment for capitated provider models.
The price target reduction of 50% reflects Barclays’ diminished confidence in agilon health’s near-term financial performance following these operational challenges and leadership changes.
In other recent news, Agilon Health Inc. reported second-quarter results that did not meet analyst expectations, leading to the suspension of its full-year guidance. The company missed its second-quarter medical margin guidance by $113 million. Additionally, CEO Steven Sell has stepped down, marking a significant leadership change. In response to these developments, BofA Securities has lowered its price target for Agilon Health from $2.40 to $1.30 while maintaining an Underperform rating. These recent developments indicate challenges for Agilon Health amid market conditions and leadership transitions.
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