Truist Securities Reiterates Buy Rating on Evolent Health (EVH)

Truist Securities analyst Jailendra Singh reiterated a Buy rating and $33.00 price target on Evolent Health (NYSE: EVH).

The analyst comments "Bottom Line. M&A discussions related to EVH, whether in part of whole, is not a foreign discussion to the company. However, we always believed that an LBO transaction likely made more sense for EVH than a strategic transaction involving a health insurer, given the risk around EVH's health insurance partnerships resulting in conflict of interest. Having said that, Elevance Health (ELV, Buy, MacDonald) has been aggressive with respect to its investment in specialty care management and has noted frequently that it would consider M&A in the space to acquire capabilities. From an LBO point of view, we believe a private equity firm can pay roughly $35 for EVH and generate a reasonable IRR and MOIC (see our analysis and assumptions below). However, a joint partnership involving a strategic buyer such as ELV and a PE firm might have flexibility to push the purchase price higher."

For an analyst ratings summary and ratings history on Evolent Health click here. For more ratings news on Evolent Health click here.

Shares of Evolent Health closed at $32.09 yesterday.

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