Core Insights - Evolent Health, Inc. has completed the divestiture of its Accountable Care Organization (ACO) business to Privia Health Group, receiving $100 million in cash and potentially an additional $13 million based on future performance [1][3] - The divestiture allows Evolent to focus on its core specialty condition management areas and has led to a reduction in debt and an improvement in annual cash flow by approximately $7 million [3] Financial Performance - Piper Sandler has lowered the price target for Evolent from $18 to $6 while maintaining an Overweight rating, citing the stock's decline as an attractive entry point despite temporary challenges [4] - The firm forecasts that pro forma CY26E adjusted EBITDA will remain flat year-over-year, with meaningful earnings growth not expected until 2027 and significant debt reduction starting in 2028 [5] Market Context - Evolent's revenue is significantly impacted by expected enrollment declines in the Individual ACA Marketplace and Medicaid, which together account for about two-thirds of its revenue [4] - The expiration of enhanced Advanced Premium Tax Credits and the introduction of work requirements in Medicaid are expected to degrade the risk pool, affecting Evolent's Performance Suite business and high-margin Tech and Services revenue [4] Company Overview - Evolent Health provides healthcare administrative and clinical solutions, focusing on value-based care delivery and population health management, integrating AI into its Identifi platform for predictive analytics and cost reduction [6]