According to Goldman Sachs, leading healthcare company agilon health can grow more than 60% on its compelling business model. Analyst Jamie Perse initiated coverage of Agilon Health with a buy rating, saying the company will benefit from the fast-growing Medicare Advantage market. The population of more than 27 million members in the program is expected to grow to 37 million by 2026, according to the memo. “We believe the size of the market, consequent growth in MA patients, incentives from CMS/payers and micro-challenges facing PCPs will support a significant growth opportunity over the next 5 years,” Perse wrote in a Monday note. The company’s focus on small and medium-sized cities/regions for growth, its scalable business model requiring minimal capital expenditure and a robust pipeline of contracts already in place should support the stock, the analyst wrote. “Over the next 12 months, we expect positive catalysts from (1) better-than-expected quarterly performance in medical margin and operating leverage, (2) growth from the new CMS ACO Reach program starting next year, where we see long-term goals as achieving significant growth potential , (3) the announcement of the 2024 class early next year, which we believe could be larger than expected,” the note said. Agilon health outperformed the broader market this year. That’s just 13% in 2022, compared to a 14.7% decline in the S&P 500. The firm’s 12-month price target of $38 implies a 61.8% upside from Friday’s close of $23.48. Shares rose 0.5% in premarket trading on Monday. —CNBC’s Michael Bloom contributed to this report.