Evolent Health price target lowered to $20 from $42 at RBC Capital

RBC Capital lowered the firm’s price target on Evolent Health (EVH) to $20 from $42 and keeps an Outperform rating on the shares. The company’s Q3 EBITDA came in 49% below consensus, driven by a significant increase in Oncology costs, both retrospective and in the quarter, the analyst tells investors in a research note. On the bright side however, Evolent signed $200M of new run-rate business in Q3, highlighting the heightened demand for specialty care management, RBC adds.