UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Molina Healthcare

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Molina Healthcare

, and raised its price target from $22.00 to $24.00. Deutsche Bank noted, “MOH shows substantial progress in Texas enabling return to profitability. Molina managed to deliver a modest profit in 3Q as the Texas health plan showed improved sequential margins due to a 4% rate increase and lower medical cost trends. MOH appears fully on track to return to profitability in Texas in 4Q. While the progress is in Texas is clearly encouraging, MOH reported higher MLRs in several other important markets and the California business lost money in the quarter due to margin pressure from new SPD lives. We are raising 2012-2014 EPS ests and PT although remain Hold with strong top-line growth offset by weak margins and premium valuation.” Molina Healthcare closed on Tuesday at $22.73.