UPDATE: Bank of America Raises PT to $23 on Molina Healthcare Following Q3 Beat

Bank of America reiterated its Underperform rating on Molina Healthcare MOH but raised its price target from $22 to $23. Bank of America noted, "Overall, we are raising our 2013-2014 EPS estimates modestly to $1.40 (from $1.35) and $1.95 (from $1.90), respectively, since we already assumed Texas improvement in the out years. Our Underperform rating is based on a view that while MOH is well positioned for revenue growth, sustainable margins may just creep back to ~1.50% over time more inline with the company's 1.49% average since 2005." Molina Healthcare closed at $22.73 on Tuesday.