Stephens analyst Scott Fidel said the announcement of the much anticipated, and long delayed, Texas STAR+PLUS contract awards removes a "major overhang" on Centene (CNC), which he views as among the big winners along with UnitedHealth (UNH). United and Centene added 3 regions and 2 regions, respectively, while Molina Healthcare's (MOH) result was disappointing as it appears to have lost 4 regions on a net basis. Anthem (ANTM) also lost a net 3 regions and incumbent Cigna (CI) has "essentially been replaced" by CVS Health's (CVS) Aetna, added Fidel.

SunTrust analyst David MacDonald raised his price targets on Anthem (ANTM) to $330 from $300, Cigna (CI) to $250 from $230, Centene (CNC) to $77 from $72, CVS (CVS) to $90 from $85, Humana (HUM) to $370 from $350, Molina Healthcare (MOH) to $165 from $155, Tivity Health (TVTY) to $25 from $21, UnitedHealth (UNH) to $335 from $310, and Wellcare (WCG) to $340 from $320. The analyst cites the release of Senator Warren's plans to implement "Medicare For All", which he believes offers additional clarity and allays some investor concerns regarding the sector. MacDonald contends that the plan will offer an early buy-in, comprehensive coverage that is similar to Medicare Advantage, while strengthening the ACA/Medicaid system and offering a transition period to move to Medicare For All. The analyst adds that Managed Care companies will remain a "key part of the healthcare cost solution".

After a "big shake-up" in Kentucky's Medicaid awards, Piper Jaffray analyst Sean Weiland noted that Evolent Health (EVH) shares have sold off sharply, but he believes the news "may not be as dire as one thinks." Evolent will recoup its $70M investment in Passport on the wind-down process and can still grow revenue by 10% in 2020 given that Passport revenue in the state will continue through June 30, according to Weiland, who sees visibility on added revenue from other wins. He believes Evolent shares are oversold in morning trading, the analyst added. Piper Jaffray analyst Sarah James also weighed in on the Kentucky awards, calling the move "most material" for sentiment on Molina Healthcare (MOH). She estimates being added in Kentucky will add $1.1B in revenue and 48c in EPS for Molina, assuming an even split between it and the other new awardee, UnitedHealth (UNH). For Anthem (ANTM), the loss represents $700M in revenue and 7c in EPS in FY21, estimated James.