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Investing.com - Canaccord Genuity has reiterated its Buy rating and $16.00 price target on Evolent Health (NYSE:EVH), currently trading at $9.25, following the company’s second update in June. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $9 to $20.
The healthcare company reaffirmed its annual and second-quarter guidance on Monday, noting that improved oncology cost trends could potentially deliver Q2 adjusted EBITDA above the midpoint of its previously stated range if the positive trends continue. The stock has shown significant momentum, posting a 13% return over the past week, though it remains substantially below its 52-week high of $33.63.
Evolent also reported strong momentum in its late-stage pipeline, which suggests solid growth potential for 2026, according to Canaccord’s research note.
The company has secured financing to maintain a healthy cash position and execute on new business wins following the retirement of its 2025 notes in October, providing additional financial flexibility.
Canaccord views 2024 as a reset year for Evolent, with contracts being renegotiated to lower the risk profile from the higher medical cost trends that negatively impacted the company earlier in the year.
In other recent news, Evolent Health has reported its first-quarter 2025 earnings, showing a mixed performance with a revenue beat but an earnings per share (EPS) miss. The company posted a revenue of $483.6 million, surpassing the expected $460.58 million, while EPS came in at $0.06, falling short of the forecasted $0.08. Evolent Health also reaffirmed its second-quarter and full-year 2025 Adjusted EBITDA guidance, maintaining a range of $33 million to $40 million for Q2 and $135 million to $165 million for the full year, driven by favorable oncology cost trends. Additionally, JMP Securities reiterated its Market Outperform rating for Evolent Health, highlighting the company’s improved contracting mechanisms and a robust business pipeline. The firm considers 2025 as a challenging earnings year but expressed increased confidence in Evolent’s profit projections due to potential oncology trend moderation. Evolent Health has also secured a Commitment Letter with Ares Management (NYSE:ARES) Credit funds, ensuring additional non-dilutive capital to address its 2025 Convertible Notes. CEO Seth Blackley noted significant growth in business development, leading to an increased forecast for new revenue bookings entering 2026. Lastly, the company launched new oncology solutions, aiming to expand its market reach and enhance its integrated condition management model.
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