Baird analyst Matthew Gillmor sees indications that the payment rate dispute impacting Passport Health may be improving. Local press reports indicate Passport met with state officials on Tuesday to review draft rates that will become effective April 1, Baird analyst Matthew Gillmor tells investors in a research note. Further, reported comments from Evolent Health at an investor conference suggest the April 1 draft rates may offset prior reductions and stabilize Passport's financial position, the analyst adds. He believes shares of Evolent overstate the risks associated with Passport. While the loss of Passport would be a "significant negative," the stock would ultimately recover above current levels, says Gillmor. The analyst estimates Evolent Health shares are worth at least $25 with Passport and "perhaps" $18-$20 without Passport. He points out that Passport Health is the second-largest Medicaid plan in Kentucky and Evolent's largest client. Gillmor keeps an Outperform rating on the shares with a $25 price target. The stock in midday trading is up 5%, or 69c, to $13.79.