UPDATE: Deutsche Bank Lowers PT on Molina from $23 to $22

Deutsche Bank maintained a Hold rating on Molina

and lowered its price target from $23 to $22. Deutsche Bank wrote, “While the majority of MCOs have missed 2Q earnings expectations, we think MOH will likely claim the prize for posting the most significant operating loss on a per share basis at $(0.80). On the call MOH walked through its plan to get Texas back to break-even by year end and disclosed a 6% rate increase effective 9/1. After hearing MOH's more sobering update on Texas, we think CNC's guidance to return to normalized margins in TX with a +3.7% rate update appears much more aggressive. We cut ests and trim PT to $22 from $23. Remain Hold with strong top-line growth offset by margin pressure.” Molina closed at $25.29 on Thursday.