Alignment Healthcare's Valuation Shows Promise In A Competitive Market: Analyst
Portfolio Pulse from Vandana Singh
Alignment Healthcare Inc (ALHC) has maintained a 4-star rating from the Centers for Medicare & Medicaid Services for its California Medicare Advantage HMO. Its North Carolina HMO achieved a 4.5-star rating. Raymond James has upgraded Alignment Healthcare to a Strong Buy and increased the price target to $10. The company's valuation trades at 0.5x 2024E and 0.4x 2025E revenue, which is undemanding given the growth potential. This is compared to Humana Inc (HUM), which trades at ~$10,000 of EV per MA life, and Accolade Inc (ACCD), Health Catalyst Inc (HCAT), and Phreesia Inc (PHR), which trade at 1-2x revenue.
October 16, 2023 | 6:36 pm
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POSITIVE IMPACT
Alignment Healthcare has been upgraded to a Strong Buy by Raymond James, with a price target of $10. The company's valuation is considered undemanding given its growth potential.
The upgrade by Raymond James and the maintained high ratings for its HMOs indicate a positive outlook for Alignment Healthcare. This could lead to an increase in the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Accolade Inc trades at 1-2x revenue, which is higher than Alignment Healthcare's valuation.
The news mentions Accolade's valuation in comparison to Alignment Healthcare's. However, it does not provide any specific information that could impact Accolade's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Health Catalyst Inc trades at 1-2x revenue, which is higher than Alignment Healthcare's valuation.
The news mentions Health Catalyst's valuation in comparison to Alignment Healthcare's. However, it does not provide any specific information that could impact Health Catalyst's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Humana Inc trades at ~$10,000 of EV per MA life, which is higher than Alignment Healthcare's valuation.
The news mentions Humana's valuation in comparison to Alignment Healthcare's. However, it does not provide any specific information that could impact Humana's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Phreesia Inc trades at 1-2x revenue, which is higher than Alignment Healthcare's valuation.
The news mentions Phreesia's valuation in comparison to Alignment Healthcare's. However, it does not provide any specific information that could impact Phreesia's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50