An article last week from Insider Louisville reported on the financial challenges of Passport Health and pinned the blame on Evolent Health (EVH), Piper Jaffray analyst Sean Wieland tells investors in a research note. The article, titled “Passport’s finances being dragged down by $220M in ‘management fees’ to Evolent Health,” suggests Evolent is largely to blame for Passport’s financial challenges, explains the analyst. However, after catching up with Mark Carter, CEO of Passport Health, Wieland learned that the Evolent Health relationship is going well and meeting objectives. While Passport is wrangling with regulators over capitation rates, the issue is not tied to the Evolent relationship, the analyst notes. He lowered his price target for Evolent Health to $33 from $34 and keeps an Overweight rating on the name.
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