On June 25, Molina Healthcare rose 5.54% in regular trading, trading at $212.58 USD/share, with turnover of $42.47 million. The rally was driven by RBC Capital's initiation of coverage on June 23, assigning a Sector Perform rating with a $216 price target.
RBC highlighted that Molina has a clear path to earnings growth through 2027, supported by the reversal of Florida CMS startup costs, exit from Medicare Advantage Prescription Drug plans, and operating leverage from approximately $6 billion in new revenue. Management expects at least $4.50 per share in embedded 2027 earnings, with RBC's adjusted EPS estimate of $9.60 broadly in line with company outlook. At its Investor Day, Molina projected adjusted EPS of $25 and premium revenue of $64 billion by 2029. Additionally, the company recently secured an Illinois Medicaid managed care contract covering approximately 3.1 million beneficiaries, effective January 2027. Multiple other firms including UBS ($202 target), Truist ($205 target), and Morgan Stanley ($167 target) have also raised price targets in recent months.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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