Analyst Daniel Grosslight of Citi maintained a Buy rating on Evolent Health, retaining the price target of $14.00.
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Daniel Grosslight has given his Buy rating due to a combination of factors that highlight Evolent Health’s strategic positioning and financial outlook. The company has made a strategic decision to exit its ACOs, which was part of an annual product review, allowing them to focus more on their core products without significant stranded costs. This move is expected to streamline operations and enhance efficiency.
Additionally, Evolent Health’s PS contracts are currently profitable and operating within risk corridors, with a projected care margin target increase from 7% to 10% over time. The company’s conservative posture, coupled with expected revenue from exchanges and a potential benefit rush in cardiology, supports a positive outlook. These factors, combined with an expected share price return of 57%, underpin Grosslight’s Buy rating for the stock.
Grosslight covers the Healthcare sector, focusing on stocks such as McKesson, Evolent Health, and Teladoc. According to TipRanks, Grosslight has an average return of 3.4% and a 42.94% success rate on recommended stocks.
In another report released on September 24, Needham also reiterated a Buy rating on the stock with a $0.00 price target.