Evolent Health, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Charles Rhyee from TD Cowen maintained a Buy rating on the stock and has a $8.00 price target.
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Charles Rhyee has given his Buy rating due to a combination of factors that highlight Evolent Health’s potential for growth despite certain challenges. The company’s third-quarter results surpassed expectations, and the establishment of new partnerships indicates sustained demand for its services. Although there are concerns about potential declines in membership due to policy changes, particularly affecting 2026 EBITDA growth, the current stock price seems to have already accounted for this downside risk.
Rhyee believes that the company’s strategic moves, such as signing new contracts and expecting significant top-line growth in the coming years, position it well for future success. Even though 2026 might be a challenging year, the outlook for 2027 and beyond appears promising, with anticipated strong EBITDA growth. The attractive valuation of the shares, especially when considering the expected return to growth in 2027, supports the Buy rating, as the market may soon begin to focus on these longer-term prospects.