Evolent Health, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Rhyee from TD Cowen maintained a Buy rating on the stock and has a $7.00 price target.
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Charles Rhyee has given his Buy rating due to a combination of factors related to Evolent Health’s earnings outlook and valuation. He views management’s 2026 adjusted EBITDA guidance of $110M–$140M as deliberately cautious, in part because it includes a sizable $25M reserve tied to the company’s two major performance-based contracts with Aetna and Highmark, which he believes may ultimately prove overly conservative.
In his model, Rhyee projects adjusted EBITDA of roughly $120M in 2026 and $168M in 2027, alongside 2026 revenue of about $2.50B, which falls within management’s range. Even after trimming his forecasts and cutting the price target to $7, his discounted cash flow analysis suggests the stock trades at an attractive valuation of about 10x his 2027 EBITDA estimate, leaving room for upside as the company executes and potentially outperforms its guidance.
According to TipRanks, Rhyee is a 3-star analyst with an average return of 2.6% and a 49.39% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as Cardinal Health, Cigna, and Option Care Health.
In another report released on February 26, Citi also maintained a Buy rating on the stock with a $4.00 price target.