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Investing.com - Barclays (LON:BARC) upgraded Alignment Healthcare Inc (NASDAQ:ALHC) from Underweight to Equalweight on Thursday, while raising its price target to $13.00 from $9.00. The stock, currently trading at $15.75 and sporting a market cap of $3.07 billion, has shown strong momentum with an 11.7% gain in the past week.
The upgrade follows Alignment Healthcare’s second-quarter earnings report, which exceeded expectations with revenue 6% above forecasts, EBITDA $32 million higher than anticipated for core operations, and membership growth 1% above projections.
Barclays noted these results were strong even after excluding a $14 million out-of-period earnings benefit that contributed to the overall performance.
The investment firm indicated that the positive quarterly results reduce downside risk to earnings for the remainder of the year, adding that Medicare Advantage stands as one of the few market segments investors can approach with confidence for next year.
Despite acknowledging Alignment’s differentiated operating performance compared to large-cap peers over the past 18 months, Barclays cautioned that the company’s valuation "still looks rich against any historical government comp set and limits stock upside," particularly when accounting for up to 243 million potentially dilutive shares compared to 209 million reported in the second quarter. This view aligns with InvestingPro analysis, which indicates the stock is currently overvalued, trading at a high Price/Book ratio of 23.8x. Discover more insights and 6 additional ProTips for ALHC with an InvestingPro subscription.
In other recent news, Alignment Healthcare LLC reported its second-quarter 2025 earnings, revealing a significant surge in earnings per share (EPS) to $0.07. This result notably surpassed analysts’ expectations, which had projected an EPS of -$0.07. The company’s revenue also demonstrated strong performance, reaching $1 billion and exceeding the forecasted $960.51 million. These financial results indicate robust business growth for Alignment Healthcare. The company’s impressive earnings report has caught the attention of investors and analysts alike. While the stock price movement is not discussed here, the positive earnings and revenue figures are crucial indicators for stakeholders. Analyst reactions to these results have not been detailed in the recent developments. However, the financial community may closely monitor Alignment Healthcare’s future performance following these results.
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