After Canaccord Genuity and Jefferies gave Evolent Health (NYSE: EVH) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Mohan Naidu maintained a Buy rating on Evolent Health today and set a price target of $31. The company’s shares closed on Friday at $21.95, close to its 52-week high of $24.
Naidu commented:
“CMS’s new risk-based model rules confirm our expectation of a much more expedited and aggressive move to push providers toward higher double-sided risk models. The draft lays a path for ACOs to 2-sided profit/loss-sharing models starting with 25% profit-only sharing to 75% profit/loss-sharing. We believe these rules will force providers to seek solutions and services that help organizations manage risk and perform better in risk contracts. The biggest beneficiary of these movements is EVH, and given CERN’s recent investment into Lumeris and their position in hospitals, it’s likely to benefit as well. Also, the draft highlights the use of telehealth and medication therapy management, further validating our bullishness on TDOC and TRHC.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 15.0% and a 62.6% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.
Evolent Health has an analyst consensus of Strong Buy, with a price target consensus of $27.75, a 26.4% upside from current levels. In a report issued on July 29, Canaccord Genuity also maintained a Buy rating on the stock with a $24 price target.
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Based on Evolent Health’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $9.92 million. In comparison, last year the company had a GAAP net loss of $16.91 million.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock.
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Evolent Health, Inc. engages in the provision of health care delivery and payment services. Its solutions include population health management, health plan administration and third party administration, network performance management, risk adjustment, pharmacy benefit management, analytics and performance improvement, and technology and electronic medical record integration. The company was founded by Frank J. Williams, Seth B. Blackley, and Tom Peterson in August 2011 and is headquartered in Arlington, VA.
