UPDATE: Jefferies Downgrades Molina Healthcare to Underperform on Valuation

Jefferies reduced its rating on Molina Healthcare

from Hold to Underperform and lowered its price target from $20 to $19. Jefferies noted, "MOH's valuation places a heavy bet on take-out, we think. Even if that does happen, the valuation would have to meaningfully exceed AGP's takeout multiple to make it interesting from here. CA Duals seem to present a low probability for operational upside in 2013. 2014 should see positive margin, but that's a long time and a lot of execution risk to hold through. We are downgrading MOH to Underperform from Hold and lowering our price target another dollar to $19 from $20. Molina Healthcare closed at $23.14 on Monday.