.jpg "Evolent Health (NYSE: EVH)")
In a report released today, Mohan Naidu from Oppenheimer maintained a Buy rating on Evolent Health (NYSE: EVH), with a price target of $22. The company’s shares closed on Friday at $18.50.
Naidu observed:
“Evolent’s analyst day highlighted the current trends in risk-based reimbursement, the improved regulatory environment and the company’s capabilities, which help clients transition from the current fee-for-service model to manage risk. The new HHS secretary is much more active in pushing the transition to risk-based models. In Medicare, we expect some movement in the ~500 ACOs to next-generation ACOs, where EVH has proven to be a strong partner. Similarly, an increase in risk models pushed by the states will likely provide several opportunities for EVH in Medicaid. With the concerns of capital deployment behind us now, we believe EVH is positioned very well to gain from the secular increasing push toward risk-based reimbursement with limited competition.”
According to TipRanks.com, Naidu is a 4-star analyst with an average return of 9.5% and a 56.3% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.
Currently, the analyst consensus on Evolent Health is Strong Buy and the average price target is $22.75, representing a 23.0% upside.
In a report issued on May 9, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $28 price target.
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Based on Evolent Health’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $13.63 million. In comparison, last year the company had a GAAP net loss of $18.01 million.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is negative on the stock.
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Evolent Health, Inc. engages in the provision of health system solutions. It includes consulting, population health technology and clinical and operational capabilities. The company was founded by Frank Williams, Seth Blackley, and Tom Peterson in August 2011 and is headquartered in Arlington, VA.
