William Blair analyst Ryan Daniels has maintained their bullish stance on EVH stock, giving a Buy rating on February 12.
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Ryan Daniels has given his Buy rating due to a combination of factors that suggest Evolent Health is well-positioned for future growth. Despite the company’s adjusted EBITDA for the fourth quarter of 2024 falling on the lower end of expectations, Evolent Health has managed to maintain strong contractual relationships, achieving a 100% renewal rate with its largest customers, which account for over 90% of its sales. This renewal success, combined with new contract structures, is expected to enhance the company’s revenue visibility.
Furthermore, Evolent Health has been proactive in updating its contracts to drive an additional $115 million in adjusted EBITDA, exceeding initial targets. While the company faces some headwinds in 2025 related to oncology cost trends and Medicare Advantage member churn, these are balanced by planned investments in AI-based initiatives expected to yield significant savings in 2026. The guidance for 2025 suggests improved earnings performance, with adjusted EBITDA forecasted to range between $135 million and $165 million, supporting a positive outlook for the company’s financial trajectory.
In another report released on February 12, Needham also maintained a Buy rating on the stock with a $15.00 price target.