Molina Healthcare price target lowered to $175 from $190 at Truist

Truist analyst David MacDonald lowered the firm’s price target on Molina Healthcare (MOH) to $175 from $190 and keeps a Hold rating on the shares. While there remains uncertainty around Enhanced Advance Premium Tax Credits, expectations around an extension resolution are low, and the firm’s estimates assume meaningful membership contraction in Marketplace in 2026 across its coverage universe, the analyst tells investors in a research note. Truist sees an attractive Medicare margin recovery opportunity in both Individual and Group given what a conservative utilization assumptions dialed into pricing following several years of strong trend, the attractive MA rate update, and the companies’ focus on margin over growth aided by targeted initiatives including benefit adjustments, pricing and footprint rationalization.