Raymond James cuts Alignment Healthcare stock price target on star rating downgrade
Raymond James has reduced Alignment Healthcare (ALHC) stock's price target from $19 to $10 while keeping its Outperform rating. This decision comes after a downgrade on the company's California plan, which makes up about 75% of enrollment. The firm cited concerns over the downgrade and the impact on the company's 2028 EBITDA. Raymond James estimates a $200 million EBITDA headwind for 2028, with some of the impact potentially offset through shared risk arrangements and benefit cuts.
The company's 2026 and 2027 EBITDA estimates have also been lowered to $140 million and $180 million, respectively. Despite this downgrade, the stock is trading at approximately $3,000 EV per life, and analysts believe it may be undervalued with an RSI in oversold territory.
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