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Investing.com - Benchmark has reiterated its Buy rating and $1.50 price target on agilon health Inc (NYSE:AGL), which currently trades at $1.09, as the healthcare company’s 2026 outlook takes shape against an improving macro backdrop. According to InvestingPro data, analyst price targets range from $1.00 to $5.00, suggesting potential upside from current levels.
The research firm maintains a constructive view on agilon health , citing management’s ongoing efforts to improve contract economics and data visibility. Investor confidence in the company reached a low point following a second-quarter earnings miss that led to suspended 2025 guidance and the CEO’s departure, with Board Chair Ronald Williams stepping in as Executive Chairman. InvestingPro analysis shows the stock has fallen over 70% in the past year, though the company maintains a FAIR financial health score.
Benchmark believes the current 2026 AEBITDA consensus estimates don’t align with management’s latest messaging, which will be presented at an upcoming investor conference. The macro picture for agilon health appears more favorable, with Medicare Advantage scheduled for a 5.1% increase in 2026—the largest in a decade—while the acceleration of cost trends that began in 2024 has stabilized. The company has demonstrated strong revenue growth of 11.76% over the last twelve months, though InvestingPro data indicates it’s currently operating at negative profit margins.
The firm notes that agilon health has implemented company initiatives including improved visibility and alignment of financial and operational data, which are driving better forecasting accuracy for RAF scores and cost trends in 2026. The company has also enhanced its burden-of-illness program to address high-cost care conditions that drive the majority of inpatient utilization.
Benchmark expects operating expense reduction to become apparent in 2026 and believes the current valuation does not reflect many of these positive developments at agilon health.
In other recent news, agilon health Inc. reported second-quarter results that missed analyst expectations, leading to the suspension of its full-year guidance. The company faced significant challenges, including a medical margin shortfall of $113 million and a revenue miss of $75 million. Additionally, agilon health announced the departure of CEO Steven Sell, contributing to uncertainty about its future leadership. Analyst reactions followed these developments, with Bernstein downgrading the stock from Outperform to Market Perform due to margin pressures, adjusting the price target from $4.00 to $1.40. Barclays also lowered its price target to $1.50, citing an EBITDA miss of $55 million and maintaining an Underweight rating. BofA Securities further reduced its price target to $1.30, continuing to rate the stock as Underperform. These recent events highlight the challenges agilon health is currently facing in the market.
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