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

Group 1 - Evolent Health, Inc. (NYSE:EVH) is considered one of the best penny stocks to buy, despite a price target cut from Citi to $6 from $9.50 while maintaining a Buy rating, reflecting cautious optimism for 2026 amid a challenging 2025 [1] - Analysts at Citizens reiterated an Outperform rating on Evolent Health, lowering the price target to $10 from $11, indicating significant upside potential with an 11x multiple to the reduced EBITDA estimate of $154 million, down from $162 million [2] - The price target reduction is attributed to more conservative operating margin assumptions for 2026 to 2027, as the company faces potential erosion in Affordable Care Act membership this year [3] Group 2 - Evolent Health's fourth-quarter results are anticipated to provide insights into its strategic pivot towards specialty care, which is expected to enhance profitability [4] - The company has divested Evolent Care Partners to Privia Health Group to focus on core operations and reduce debt [4] - Evolent Health partners with health plans and providers to transition to value-based care, offering specialized clinical management, administrative simplification, and technology-driven solutions for high-cost patient populations [5]