Molina Healthcare's Price Target Cut by Mizuho Analyst to $330, Maintaining Outperform Rating

Molina Healthcare's (MOH) price target has been reduced by Mizuho analyst Ann Hynes from $400 to $330 while maintaining an Outperform rating. The adjustment is part of a second-quarter earnings forecast, with ongoing cost challenges facing managed care companies. Wall Street analysts forecast an average target price of $334.16, representing a 46.19% upside from the current price. The estimated GF Value for MOH in one year is $472.59, suggesting a 106.75% upside.

Molina Healthcare (MOH) has seen a reduction in its price target by Mizuho analyst Ann Hynes, from $400 to $330, while maintaining an Outperform rating. This adjustment comes as the company faces ongoing cost challenges in the managed care sector.

Wall Street analysts have forecasted an average target price of $334.16 for MOH, representing a 46.19% upside from the current price. The estimated GF Value for MOH in one year is $472.59, suggesting a potential 106.75% upside [3].

The downgrade by Mizuho reflects the broader market sentiment towards managed care companies, which are grappling with rising healthcare utilization and cost pressures. This trend is evident in the recent earnings guidance revisions by Molina Healthcare and other industry peers.

Molina Healthcare has faced several challenges, including a temporary dislocation between premium rates and medical cost trends, which has accelerated across its business lines. The company has revised its full-year 2025 earnings guidance to a range of $21.50 to $22.50 per share, down from earlier projections of at least $24.50 [2].

Other analysts have also adjusted their price targets and ratings for MOH. Morgan Stanley downgraded MOH from Overweight to Equal Weight, setting a new price target of $266 [1]. UBS maintained a Neutral rating but reduced its price target to $260, while Barclays adjusted its target to $270, also maintaining an Equal Weight rating [2].

The healthcare sector is experiencing significant shifts, with increasing acuity levels in the ACA Marketplace population and rising healthcare costs in specialized areas like behavioral health. These trends are impacting managed care companies like Centene Corporation (NYSE:CNC) and Molina Healthcare [3].

Investors are advised to monitor these developments as managed care companies navigate these challenges. The outlook for MOH remains positive, with analysts expecting the company to continue to perform well in the face of these cost pressures.

References:
[1] https://www.gurufocus.com/news/2968923/molina-healthcare-moh-downgraded-by-morgan-stanley-moh-stock-news
[2] https://za.investing.com/news/analyst-ratings/molina-healthcare-stock-rating-maintained-by-wolfe-research-amid-earnings-cut-93CH-3784559
[3] https://www.investing.com/news/swot-analysis/centenes-swot-analysis-managed-care-giant-faces-headwinds-amid-market-shifts-93CH-4123804