In a report released today, Adam Ron from Bank of America Securities reiterated a Sell rating on Molina Healthcare (MOH – Research Report), with a price target of $309.00.
Adam Ron’s rating is based on a combination of factors that indicate challenges for Molina Healthcare. The company’s recent quarterly results fell short of expectations, primarily due to pressures on the Medical Loss Ratio (MLR) across all its business lines. Although the Medicaid MLR showed some improvement compared to peers, the overall performance was weighed down by significant misses in Medicare and marketplace segments. Furthermore, the company’s outlook for 2025 disappointed investors, with earnings predictions falling below market expectations and growth targets being scaled back.
Adam Ron also highlighted the impact of startup costs associated with new contracts, which contributed to the lower-than-anticipated earnings. Despite some positive aspects, such as a better-than-expected revenue and general and administrative expenses, the visibility on future growth remains low. Consequently, Adam Ron lowered forward estimates and maintained a Sell rating, reflecting the uncertainties and risks surrounding the company’s financial performance.
According to TipRanks, Ron is a 4-star analyst with an average return of 13.9% and a 45.45% success rate. Ron covers the Healthcare sector, focusing on stocks such as Cigna, Molina Healthcare, and Astrana Health.