UPDATE: Citigroup Raises Target on Molina Healthcare to $55

Citigroup reiterates its Buy rating on Molina Healthcare MOH and raises its price target significantly to $55 from $36 as it believes the company's dual eligibility could have a significant impact on the company in 2012. Citigroup comments, "The market appears to be clearly a lot more focused on the duals now, as Molina's stock is up 48% since mid-December, when we first highlighted the impact duals could have on the Medicaid plans this year. That said, as duals convert in Michigan, California, and Ohio, if Molina is able to maintain its existing Medicaid market share in just these three states, it would add around $3.8 billion in revenue, relative to projected 2012 revenue of around $6 billion. So even if Molina's ultimate share of the dual opportunity turns out to be a lot lower, it would still have a big impact on the company's earnings trajectory over the next couple years." MOH closed at $31.58 a share on Monday.