Ryan Langston, an analyst from TD Cowen, reiterated the Buy rating on Molina Healthcare. The associated price target was lowered to $203.00.
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Ryan Langston’s rating is based on a combination of factors that suggest a positive outlook for Molina Healthcare despite recent challenges. The company has adjusted its earnings guidance for FY25, reflecting a 22% reduction compared to earlier expectations. However, management remains confident that they have accounted for the pressures affecting the new guidance, setting a lower baseline for growth in 2026.
Langston notes that Molina Healthcare is effectively managing medical costs in a challenging environment, particularly in Medicaid, where they face pressures in behavioral, pharmacy, and inpatient/outpatient care. The company is actively working with state partners to restore Medicaid rates to appropriate levels and has considered higher cost trends in their Medicare and Marketplace bids for 2026. Despite the challenges, Molina’s strategic efforts and adjustments in rate filings suggest a potential for growth, justifying the Buy rating.
In another report released on July 23, Wells Fargo also maintained a Buy rating on the stock with a $216.00 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MOH in relation to earlier this year.