Molina Healthcare, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst David S Macdonald from Truist Financial downgraded the rating on the stock to a Hold and gave it a $180.00 price target.
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David S Macdonald has given his Hold rating due to a combination of factors impacting Molina Healthcare. The company is facing significant medical cost pressures across its business lines, which have led to a downgrade from a Buy to a Hold rating. This decision comes after the company’s second-quarter results and a lowered full-year guidance, which reflect these ongoing cost challenges.
Additionally, Macdonald has adjusted the price target for Molina Healthcare to $180 from a previous $335, based on revised estimates and a lower assumed multiple. The elevated utilization pressures and uncertainties in areas such as the Marketplace and Medicaid have contributed to this cautious stance. While corrective pricing actions are expected, the challenging environment and uncertainties in regulatory impacts and cost trends have led to this more conservative outlook.
In another report released today, Robert W. Baird also maintained a Hold rating on the stock with a $179.00 price target.