Evolent partner could still win Kentucky contract, says Cantor Fitzgerald
Evolent Health shares dropped sharply yesterday, then recovered, after Kentucky media reports indicated that the outgoing administration overrode the legislative committee's rejection of the Medicaid awards, Cantor Fitzgerald analyst Steven Halper tells investors in a research note. For now, all of the recently awarded contracts remain in place, he adds. Halper assumes the incoming Beshear administration will review the contract decisions, however. He keeps an Overweight rating on Evolent Health shares with a $10 price target, which assumes no contribution from Passport. Nonetheless, the analyst believes it is possible that Passport will be awarded a contract following the Bevin administration's review. Still, visibility into the ultimate outcome of the process is low, Halper cautions.