08:43 AM EDT, 08/23/2024 (MT Newswires) -- Evolent Health ( EVH ) is a better fit for a leveraged buyout rather than a strategic transaction with a health insurer, Truist said in a note on Friday.

According to Reuters, the company is in discussions with private equity firms and companies, including KKR, TPG, CD&R, and Elevance Health (ELV), regarding a potential sale.

Health insurer Elevance, known for its substantial investments in specialty care and M&A activity, might partner with a private equity firm for the transaction, the Reuters report said.

Truist said a private equity firm could pay around $35 per share for EVH, generating a reasonable internal rate of return and multiple on invested capital.

It added, however, that a partnership involving Elevance Health and a private equity firm could potentially raise the purchase price.

Truist said a partnership structure between Elevance Health and a private equity firm could resemble past deals in the sector, such as AmerisourceBergen, now known as Cencora, partnering with TPG to acquire OneOncology.

Truist maintained Evolent Health's ( EVH ) rating as 'buy' and price target at $33.

Price: 32.04, Change: -0.05, Percent Change: -0.16