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Investing.com - Piper Sandler has reiterated its Overweight rating and $18.00 price target on Evolent Health (NYSE:EVH), representing an 89% upside from the current price of $9.49, following investor meetings with the company’s CFO John Johnson earlier this week. According to InvestingPro data, analyst targets range from $9 to $20, with a strong consensus recommendation of 1.43 (Buy).
The firm noted that in the second quarter of 2025, Evolent Health lowered its outlook for calendar year 2025 and described ongoing infrastructure investments. While InvestingPro data shows the company isn’t currently profitable, analysts expect positive earnings this year. The company also used year-to-date expense favorability to strengthen reserves against potential adversity in the second half of 2025.
Piper Sandler observed that during the second quarter, Evolent Health shifted away from its healthcare information technology tendencies and began to operate more like a risk-bearing organization, representing a new financial paradigm for the company.
The research firm believes this new approach should regulate second-half 2025 results and influence calendar year 2026 guidance for the healthcare company.
According to Piper Sandler, these developments establish a positive 12-month catalyst path that could transform Evolent Health stock from a "fast money favorite to long-term holding."
In other recent news, Evolent Health announced its second-quarter 2025 earnings, which fell short of expectations. The company reported an earnings per share (EPS) of -$0.10, significantly below the anticipated $0.08, and revenue of $444 million, missing the forecasted $459.4 million. Additionally, Evolent Health completed a $175 million exchange of its Series A Convertible Preferred Stock for a Second Lien Term Loan, effectively extending its debt maturities. In another development, Evolent Health priced a $145 million convertible notes offering at 4.50%, slightly increasing from the initially planned $140 million. The company has also granted initial purchasers a 30-day option to purchase up to an additional $21.75 million of notes. KeyBanc reiterated its Overweight rating on Evolent Health, maintaining a price target of $20. These recent developments highlight the company’s ongoing financial activities and analyst perspectives.
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