.jpg "Evolent Health (NYSE: EVH)")
Oppenheimer analyst Mohan Naidu maintained a Buy rating on Evolent Health (NYSE: EVH) today and set a price target of $31. The company’s shares closed on Friday at $23.25.
Naidu wrote:
“Evolent’s services are invaluable for organizations shifting to risk-based reimbursement. of our market analysis, we are focusing on the Medicare Next Gen ACO market (Part 2 on Medicaid coming up). Our analysis shows positive shared earnings potential for organizations participating in the Next Gen ACO model that perform better than their benchmark (Exhibit 3). Further, we identified 515 ACOs, which we believe are primary targets for Next Gen ACOs, given recent rhetoric from HHS and CMS about pushing toward more risk-based reimbursement programs. Among current Next Gen participants, EVH has 20% market share, and we believe as more ACOs are incentivized (and pushed) into Next Gen ACOs, more organizations are likely to turn toward Evolent. Reiterate Outperform, increasing target to $31.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 13.2% and a 62.0% 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 $25.25, representing an 8.6% upside.
In a report issued on June 4, Piper Jaffray also initiated coverage with a Buy rating on the stock with a $30 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 26 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.
