Evolent Health (EVH) Downgraded by Canaccord Amid Increased Near-Term Uncertainty and Ambiguity in Medicare/Medicaid Membership

Evolent Health Inc. (NYSE:EVH) is one of the stocks that will double in 2026. On November 21, Citi lowered the firm’s price target on Evolent Health to $9.50 from $11.50 while maintaining a Buy rating on the shares.

Earlier on November 14, Canaccord also lowered the firm’s price target on Evolent Health to $9 from $16 while keeping a Buy rating on the shares. Canaccord lowered its target valuation by removing the premium previously assigned to the stock. This adjustment is due to the increased near-term uncertainty surrounding Evolent Health’s shares, which are currently in limbo. Furthermore, ongoing ambiguity regarding Medicare Advantage and Medicaid membership changes is also holding the stock hostage in the near term.

Evolent Health (EVH) Downgraded by Canaccord Amid Increased Near-Term Uncertainty and Ambiguity in Medicare/Medicaid Membership

In its Q3 2025 earnings report, Evolent Health announced delivering $480 million in Q3 revenue, which represented an 8% sequential growth and was at the top of its guidance range. For the full year 2025, Evolent Health maintained its revenue guidance to be between $1.87 and $1.88 billion. The company ended the quarter with $116.7 million in cash and equivalents.

Looking ahead to 2026, Evolent Health secured ~$2.5 billion in revenue under contract. This includes two new revenue arrangements expected to add more than $550 million in new revenue for 2026. The new contracts operate under an enhanced performance suite featuring a narrower corridor model with prevalence and case mix adjustments, which is now the standard structure for new and existing business.

Evolent Health Inc. (NYSE:EVH), through its subsidiary, provides specialty care management services in oncology, cardiology, and musculoskeletal markets in the US.

While we acknowledge the potential of EVH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EVH and that has 100x upside potential, check out our report about this cheapest AI stock.

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