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UPDATE: Bank of America Upgrades Molina Healthcare to Neutral on Stronger Revenue Trajectory

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Bank of America raised its rating on Molina Healthcare (NYSE: MOH) from Underperform to Neutral and raised its price objective from $23 to $29.

Bank of America commented, "We are upgrading MOH shares to Neutral (from Underperform) with a view that companies with Medicaid exposure should benefit from coverage expansions outlined in health care reform legislation. Specifically, the market is likely to refocus on revenue growth driven by states transitioning existing beneficiaries to HMOs (from unmanaged fee for service), dual eligible demonstrations and program enrollment that could increase 20% starting in 2014 as projected by the CBO. We are raising our P.O. to $29 (from $23) on P/E multiple expansion."

Molina Healthcare closed at $26.62 on Tuesday.

Latest Ratings for MOH

DateFirmActionFromTo
Jan 2015BarclaysMaintainsEqual-weight
Jan 2015Deutsche BankMaintainsHold
Nov 2014Bank of AmericaMaintainsBuy

View More Analyst Ratings for MOH
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

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