What is known from Citron’s Report on Stifel
2022.12.09 14:50
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What is known from Citron’s Report on Stifel
Budrigannews.com – Agilon wellbeing Inc (NYSE:) on Friday, was given a Buy rating and a $23 price target by Stifel.
Short-selling investment research firm Citron issued a report that criticized the company, stating that “the best days of Agilon are behind it” and that the company “unknowingly got torpedoed” by the U.S. Supreme Court without Wall Street noticing. Short-selling investment research firm Citron issued the report just a short time ago.
“estimate agilon can increase a provider groups’ total revenue per PCP by $50,000 in year 1 to $180,000+ by year 4,” however, Stifel analysts informed investors in a note.
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“Large TAM with limited penetration. We anticipate agilon’s large $125 billion MA TAM to grow by close to 10% annually and its $158 billion DC TAM to remain largely unchanged. The analysts wrote that agilon only has a 2% market share in MA and less than 1% of the potential DC market. In 2021, agilon experienced growth of 51%, and the company projected growth of 46% in 2022. We anticipate growth of 51% in 2023 and 35% in 2024, both of which are higher than consensus.”
However, Stifel believes that the estimates are “reasonable to conservative” because “capitated PMPM pricing grows by mid-single digits” and U.S. MA member growth is close to 10%.
“On a platform model that is very capex and opex light, Agilen offers relatively high exposure to the U.S. healthcare transition to value-based care. They came to the conclusion that “we expect agilon to continue to grow by 30% or more in the medium term while expanding margins and beginning to generate cash in 2023, with $1 billion in cash and no debt on the balance sheet.”
