Evolent Health upgraded to Overweight at Stephens with sentiment near bottom

As previously reported, Stephens upgraded Evolent Health (EVH) to Overweight from Equal Weight with an unchanged price target of $7 after Q3 beat expectations. The firm thought the print was enough for stabilization given already weak sentiment, but fears over 2026 uncertainty weighed on shares and the subsequent end of the government shutdown without a subsidy extension has confirmed what Evolent was already baking into 2026 expectations, the analyst tells investors. The firm contends that sentiment is at or near the bottom, the business is in “a better spot fundamentally than it was a year ago, or even at the start of this year,” and that the growth opportunity set is “better than it has been in several years.”