Evolent Health 'Notification Award' Removes $82M Overhang, Notes Piper Sandler

In an SEC filing, Cook County named Evolent Health Inc EVH the sole third-party administrator for CountyCare Health Plan from fiscal 2023 through fiscal 2025.
Piper Sandler analyst Jessica Tassan notes that the award extends a contract Evolent has held since fiscal 2018 to provide administrative simplification services to support CountyCare's 425,000 Medicaid members.
Cook County Hospitals and Health System was a 28%, or $254 million, customer for Evolent in fiscal.
Of that $254 million, $82 million per year is tied to the expanded relationship, according to Tassan.
The analyst says today's news removes an $82 million per year overhang and leaves her "incrementally confident in the durability" of Cook County's $172 million annual subscriptions.
The analyst reiterates an Overweight rating on Evolent Health with a $32 price target.
Price Action: EVH shares are up 3.34% at $28.45 during the market session on the last check Monday.