UPDATE: Bank of America Downgrades Molina Healthcare from Buy to Underperform

Bank of America has published a report on Molina Healthcare (NYSE:

) Downgrading the stock from Buy to Underperform and lowering the price target to $18.00. In the report, Bank of America wrote, "We are downgrading MOH shares to Underperform (from Buy) with a view that balance sheet reserves are not conservative and two upcoming RFP rebids in its largest markets could also pressure margins. In 2Q11, an adjusted MLR of 84.7% (excluding 55bp from a Utah settlement) missed our 84.2% estimate, which assumed typical favorable seasonality after flu season ends." Bank of America downgraded Molina Healthcare from Buy to UNDERPERFORM with a price target lowered to $18.00.