RBC Capital analysts provided a preview of Evolent Health, Inc. (NYSE:EVH) ahead of the upcoming Q1 earnings results, scheduled on May 3.

According to the analysts, the company remains one of their favorite value-based care ideas based on a strengthening macro backdrop and accelerating cross-selling/conversion momentum, which primes the model for steady long-range EBITDA growth.

RBC Capital expects investor focus to be on assessing management's progress toward both its $180-200 million 2023 EBITDA guidance and its targeted $300 million 2024 exit rate.

According to the analysts, the two most important drivers are (1) margin progression within its existing risk-bearing contracts —the most impactful near-term EBITDA driver, and (2) continued cross-selling and Performance Suite conversions—the most impactful long-term driver.