On Monday, Piper Sandler increased the price target for Alignment Healthcare Inc (NASDAQ:ALHC) to $10.00, up from the previous $8.00, while maintaining an Overweight rating on the stock. The firm's decision follows Alignment Healthcare's announcement of a significant second-quarter revenue beat, with figures surpassing the high end of the company's guidance by $46 million.
The healthcare provider reported that its adjusted gross profit and adjusted EBITDA for the quarter also reached the upper ends of their forecasted ranges. A notable year-over-year membership growth of 56.1% brought the total to 175,000 members. Expectations are now set for the membership count to end the year between 178,000 and 180,000.
Alignment Healthcare's commitment to quality through superior Star Ratings and careful cost management has allowed the company to fund supplemental benefits and invest in product and platform innovation. The company's strategy includes targeted clinical interventions that engage high-risk members, optimize the site of care, and improve health outcomes.
These efforts have contributed to what Piper Sandler describes as a market-leading member experience, high retention rates, and significant brand equity value. The firm believes that Alignment Healthcare's business model is not only scalable and defensible but also capable of sustaining profitable growth over time.
The raised price target to $10 is based on a consistent 25x multiple of the projected higher adjusted EBITDA for the calendar year 2026. Piper Sandler reiterated its Overweight rating, signaling confidence in the company's continued performance and growth trajectory.
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