Jefferies analyst David Styblo expects shares of Magellan Health to trade higher today after the company disclosed late Friday that California's Medicaid program awarded it a contract to provide statewide pharmacy benefit administration services. The contract is worth $70M-$80M of annual revenue and should be accretive to 2021 earnings by at least 2%, perhaps upwards of 5%, Styblo tells investors in a research note. He points out California is Magellan's 27th state for providing pharmacy benefit administration services and increases its PBA revenue by ~55%. Styblo keeps a Buy rating on the shares with an $84 price target.