Molina Healthcare (MOH) PT Raised to $146 at Morgan Stanley

Morgan Stanley analyst Erin Wright raised the price target on Molina Healthcare (NYSE: MOH) to $146.00 (from $128.00) while maintaining a Equalweight rating.

The analyst commented, "MOH 1Q26 EPS & enterprise MLR came in ahead, though it maintained ‘26 EPS & premium revenue guidance, taking a conservative approach until better visibility following 2Q. Segment-level MLR guides also unchanged. MOH expects MDCD enrollment below prior (4.5M vs. 4.6M prior) but higher Marketplace (250k vs. 220k prior), keeping premium expectations flat. MOH does not expect an acuity shift from MDCD declines given fewer low/no utilizers, implying those leaving are around the avg. acuity level; mgmt. expects to provide more color here at I-Day on 5/8. In our follow up with mgmt., MOH also said it had accounted for 1Q Marketplace MLR pressures & normal seasonality should hold from here. We lift our ‘26 EPS to $5.51 (from $5.02) to reflect 1Q upside & ‘27 to $9.00 (from $8.50). We are raising our PT to $146 (from $128), derived from 16.3x our '27 EPS, a ~1.5x prem. to the historical FY+1 multiple, accounting for some of the ~$11 embedded earnings power despite current depressed levels."

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