Evolent Health initiated with a Buy at Citi

Citi analyst Daniel Grosslight initiated coverage of Evolent Health with a Buy rating and $40 price target. After multiple business model iterations, Evolent “has firmly found its stride, carving out a nice niche for itself in specialty-focused value-based care,” the analyst tells investors in a research note. The firm views the company as “gentler, kinder way” for health plans to conduct specialty utilization management. Citi thinks payors will take a more aggressive approach to utilization management. to help tamp down costs.