Evolent Health (EVH): From ACA Headwinds to Specialty Care Expansion

Evolent Health, Inc. (NYSE:EVH) is one of the best NYSE penny stocks to buy now. On January 7, Citi cut its price target for Evolent Health, Inc. (NYSE:EVH) to $6 from $9.50 but maintained a Buy rating, citing cautious optimism for 2026 despite a challenging 2025, when nearly a third of the health tech and distribution group fell more than 25%.

A day earlier on January 6, analysts at Citizens reiterated an Outperform rating on Evolent Health but lowered the price target to $10 from $11. Despite the cut, the new price target represents significant upside potential and an 11x multiple to the reduced EBITDA estimate of $154 million, down from $162 million.

The price target cut is in response to more conservative operating margin assumptions for 2026 to 2027. The company is on the cusp of erosion in Affordable Care Act membership this year. The research firm maintains an Outperform rating, asserting confidence in the company’s long-term performance amid the anticipated ACA membership challenges.

The company’s fourth-quarter results are expected to provide valuable insights into the execution of a major strategic pivot. The company has heightened its focus on its specialty care segment, which is expected to drive sustainable improvements in profitability. Last year, the company divested Evolent Care Partners to Privia Health Group as it looked to focus on core operations and reduce its overall debt load.

Evolent Health, Inc. (NYSE:EVH) partners with health plans and providers to transition to value-based care, aiming to improve quality while reducing costs. It provides specialized clinical management (particularly in oncology and cardiology), administrative simplification, and technology-driven solutions to manage complex, high-cost patient populations.

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Disclosure: None. This article is originally published at Insider Monkey.