Evolent Health price target lowered to $36 from $45 at BTIG

BTIG lowered the firm’s price target on Evolent Health (EVH) to $36 from $45 and keeps a Buy rating on the shares after the company reported “disappointing” Q3 results. In prior quarters, it sounded like Evolent was on track to recapture much of of higher costs through rate increases that are part of contracts, but he selloff in the stock seems to suggest that investors simply do not believe that Evolent can get back up to about $300M of EBITDA, the analyst says. However, the firm’s view is that recent events are “unusual” and it believes Evolent’s margins will normalize over time as price increases take effect, the analyst added.