UPDATE: Wedbush Raises PT to $38 on Molina Healthcare on Medicaid Expansion

Wedbush maintained Molina Healthcare MOH with an Outperform rating and raised the price target from $33.00 to $38.00. Wedbush analyst Sarah James wrote, "Raising price target to $38 from $33 and updating estimates to reflect Medicaid expansion and convert offering. While new contract implementations can create short-term margin pressure, we believe the path to growth is clear for MOH and 2015 earnings could be in the $2.75-3.50 range. If we use 2015 as a new run rate and discount the multiple back, we see MOH as undervalued." Molina Healthcare closed at $33.32 on Wednesday.