Goldman Sachs analyst Nathan Rich has maintained their bullish stance on MOH stock, giving a Buy rating today.
Nathan Rich’s rating is based on a thorough analysis of Molina Healthcare’s recent business developments and financial outlook. Despite Molina Healthcare’s stock underperforming after the company reiterated its 2024 adjusted EPS guidance, Rich remains optimistic about the company’s long-term prospects. The company’s confidence is bolstered by new Medicaid contracts in Texas and Michigan, which are expected to compensate for recent losses in Florida and Virginia. Additionally, the strength of Molina Healthcare’s core business is believed to counteract any negative impacts from these contract losses. The company’s management has also presented a sound plan to manage their Medicaid medical care ratio (MCR), indicating that recent increases align with expectations and are a result of strategic acquisitions and new contracts.
Furthermore, Rich acknowledges the disappointments in recent Request for Proposals (RFPs) but emphasizes Molina Healthcare’s substantial upcoming RFP pipeline, strong marketplace performance, and promising mergers and acquisitions prospects. Goldman Sachs’ analysis also highlights Molina Healthcare’s reaffirmed growth opportunities with the Bright Health acquisition, supporting its ambitious revenue and long-term EPS growth targets. Although Rich has made minor adjustments to the 2025 EPS forecast, out-year estimates remain relatively unchanged. With the stock trading at a discount compared to its three-year average, Rich maintains a Buy rating, indicating that Molina Healthcare’s stock presents a valuable investment opportunity based on its current valuation and future growth potential.
Rich covers the Healthcare sector, focusing on stocks such as Humana, Align Tech, and Molina Healthcare. According to TipRanks, Rich has an average return of 1.2% and a 47.97% success rate on recommended stocks.
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Molina Healthcare (MOH) Company Description:
Molina Healthcare, Inc. engages in the provision of health care services. It operates through the Health Plans and Other segments. The Health Plans segment consists of health plans in 11 states and the Commonwealth of Puerto Rico and includes direct delivery business. The Other segment includes the historical results of the MMIS and behavioral health subsidiaries. The company was founded by C. David Molina in 1980 and is headquartered in Long Beach, CA.
