Evolent Health (EVH) PT Lowered to $17 at RBC Capital as Membership Declines

RBC Capital analyst Sean Dodge lowered the price target on Evolent Health (NYSE: EVH) to $17.00 (from $20.00) while maintaining a Outperform rating.

The analyst commented: "EVH provided an encouraging update on its re-contracting efforts, achieving its targeted $100M+ of incremental EBITDA YoY effective 1/1—while retaining all clients—via a combination of price increases and contract conversions. That said, mgmt now expects some of this to be offset by higher oncology trend (-$25M), which it said accelerated in Nov, and membership declines (-$20M) as several clients recently terminated MA plans. The latter was something we hadn't contemplated in our previous $206M '25 EBITDA estimate which we now revise to $175M based on the lower expected membership and higher cost trend. PT to $17 (from $20)."

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