- JP Morgan has initiated Molina Healthcare ( NYSE: MOH ) with an overweight rating as the company has recently been strengthened by a series of Medicaid contracts from states.
- The firm has a $360 price target (6% upside based on Monday's close).
- Analyst Calvin Sternick said that recent Medicaid contracts it won in California, Iowa, and Nebraska should help de-risk the managed care company's ~$42B 2025 revenue target and help it achieve its 15%-18% long-term EPS growth target.
- "We like management’s focus on lower income demographics, cost management, and synergistic product lines, which we believe should enable MOH to sustain its industry-leading margin profile," he wrote.
- Sternick added that assuming no changes to the recent Medicaid contract awards, the wins would more than offset bottom- and top-line headwinds due to redeterminations next year.
- Seeking Alpha's Quant Rating views Molina ( MOH ) as a hold with high marks for profitability, momentum, and revisions .
For further details see:
Molina initiated at overweight at JP Morgan on recent Medicaid contracts