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Fly News Breaks for March 31, 2017
ABCO, EVH
Mar 31, 2017 | 07:00 EDT
After hosting investor meetings with management, Wells Fargo analyst Jamie Stockton says he continues to "strongly" recommend shares of Evolent Health. In a research note titled "Stay Thirsty," the analyst argues that few companies in Digital Health could be "World's Most Interesting" and that Evolent "might just take the cake." While the company did not explicitly comment on the Advisory Board (ABCO) M&A speculation floated by Reuters, it stated that it has no intention of doing anything that would materially change the growth profile, Stockton tells investors. He interprets this as a "no" regarding the merger happening. The analyst adds that Evolent is talking to several dozen organizations around the next generation accountable care organization cohort and has two roughly $100M managed Medicaid opportunities. Stockton keeps an Outperform rating on Evolent with a $24-$28 price target range.
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