According to Goldman Sachs, premium healthcare company agilon health could grow by more than 60% thanks to its attractive business model. Analyst Jamie Perse began covering agilon health with a buy rating, saying the company would benefit from the rapidly growing Medicare Advantage market. According to the note, the program’s population of more than 27 million members is expected to grow to 37 million by 2026. “We believe the size of the market, in line with the growth of MA patients, CMS/payer incentives and micro-challenges facing PCPs will provide significant opportunities for growth over the next 5 years,” Perse wrote in a Monday note. The company’s focus on small and medium-sized cities/regions for growth, scalable business model requires minimal capital expenditure, and a robust contract system, the analyst writes. already available will boost the stock, the analyst wrote. “Over the next 12 months, we expect positive catalysts from (1) better-than-expected quarterly operating results in terms of medical margins and operating leverage, (2) growth from the new CMS ACO Reach program, starting next year, where we see the long-term goals as having significant upside potential, (3) the announcement of the 2024 class early next year which we believe has may be larger than expected,” read the note. Agilon’s health has outperformed the broader market this year. It’s down just 13% in 2022, compared with a 14.7% drop in the S&P 500. The company’s 12-month price target of $38 means a 61.8% increase from today’s closing price. Friday is $23.48. Shares were up 0.5% in pre-market trading on Monday. — Michael Bloom of CNBC contributed to this report.