Evolent Health price target lowered to $14 from $27 at UBS

UBS analyst Kevin Caliendo lowered the firm’s price target on Evolent Health (EVH) to $14 from $27 and keeps a Buy rating on the shares. The company’s investor presentation was “less favorable”, and while there were a few positives – including success in securing the much-awaited rate increases, lack of customer attrition, and some evidence pointing to a validation of the Performance Suite business model – it is clear that Evolent is amidst a structural reset, the analyst tells investors in a research note. UBS adds it has questions around Evolent’s ability to meet long-term EBITDA growth goals of 20% on new margin ceilings and lingering uncertainty around the long-term cancer cost trend.