CVSA - Quick Take - New Advocate Health Deal Supports B2B Strategy

Research evidence excerpt

CVSA - Quick Take - New Advocate Health Deal Supports B2B Strategy

Truist Securities

Equity Research Report June 29, 2026

IT SERVICES: Education Services Covista Inc. (CVSA)

CVSA - Quick Take - New Advocate Health Deal Supports B2B Jasper Bibb

212-303-1742 Strategy

Jasper.Bibb@truist.com

Covista announced a collaboration with Advocate Health (3rd-largest U.S. non-profit

hospital system) this morning. We believe the structure is broadly consistent with the

Current Price (Jun. 26, $127.53 prior SSM Health deal and expect the deal to begin with a few Chamberlain locations near 2026)

existing Advocate facilities. First cohorts launch in September 2026 with potential to scale

Stock Rating BUY to hundreds of students annually. The partnership entails: (1) a direct hiring pathway for

Unchanged Chamberlain grads; (2) clinical immersion within Advocate facilities; (3) scholarships for BSN

programs; and (4) loan repayment support.

Price Target $140.00

Unchanged In our view, CVSA broadening the network of employer relationships is a catalyst for

faster enrollment growth over time. We think employer partnerships should help: (1) lower

cost of student acquisition; (2) create higher quality/more predictable enrollment streams;

(3) better stimulate demand as prospective students gravitate towards brand/employment

4 Page Document pathway; and (4) potentially lowering either OpEx or capital intensity over time.

We think there is more runway to add B2B partnerships at Chamberlain. For reference,

Reasons for this report HCA Healthcare (HCA, Buy, MacDonald) acquired Galen College of Nursing in 2020. Galen

now enrolls 19k+ students across 25 campuses versus the "hundreds" covered under both

✓ Quick Reaction to Newsflow/Volatility the Advocate and SSM Health relationships.