georgeclerk Alignment Healthcare ( NASDAQ: ALHC ) traded sharply higher on Thursday as Baird named the health insurer one of its top picks alongside its rivals Elevance Health ( NYSE: ELV ) and Astrana Health ( NASDAQ: ASTH ) in a research note launching its managed care coverage. “We believe these three companies are currently sitting at the precipice of unlocking a tidal wave of transformative long-term growth,” analyst Michael Ha wrote with Outperform ratings on the trio. His initial price targets on the stocks stand at $10, $54, and $649, respectively.
On Alignment ( ALHC ), Baird cites an untapped investment opportunity as the company is expected to meet or exceed its long-term Medicare Advantage membership growth, driven by positives from MA Star Ratings in California. Supporting its bullish view on Astrana ( ASTH ), the analyst cited its value-based care model, which links reimbursements to the quality of care delivered as opposed to the fee-for-service (FFS) model, which depends on historical payments. “The stage is now set as the company has possession of the licenses needed to begin converting their ~1m existing Value Based Care lives to full global risk capitation,” Ha wrote.
In addition to Elevance’s ( ELV ) value-based care model, Baird cited its specialty pharmacy unit, CarelonRx, and a potential Blues market share opportunity. More on Alignment, Astrana, etc. Astrana Health, Inc.
(ASTH) Q1 2024 Earnings Call Transcript Astrana Health, Inc. 2024 Q1 - R.
