Street Calls of the Week
Investing.com - Cantor Fitzgerald reduced its price target on Molina Healthcare (NYSE:MOH) to $180.00 from $210.00 on Friday, while maintaining a Neutral rating on the healthcare insurer’s stock. The company, with a market capitalization of $8.28 billion, is currently trading near its 52-week low of $151.95, according to InvestingPro data.
The price target adjustment represents a 14.3% decrease from the firm’s previous valuation, reflecting revised expectations for the company’s future performance.
The new target is based on an 11.3x price-to-earnings multiple applied to Cantor Fitzgerald’s 2027 earnings per share estimate of $15.89 for Molina Healthcare.
Cantor Fitzgerald identified several factors that could impact its price target, including potential changes in Medicaid margins, evolving policies affecting Medicaid, Medicare, and Marketplace programs, and Molina’s ability to achieve growth while adjusting pricing in Medicare and health insurance exchange markets.
Additional considerations mentioned by the firm include opportunities for new Medicaid contracts and the overall Medicaid rate environment, which could influence the company’s financial trajectory.
In other recent news, Molina Healthcare reported a mixed financial performance for the third quarter of 2025. The company’s revenue exceeded expectations, reaching $11.48 billion, which was a 4.94% increase over the forecast of $10.94 billion. However, the adjusted earnings per share (EPS) presented a significant shortfall, coming in at $1.84 compared to the expected $3.91, marking a 52.94% miss. Following this, Goldman Sachs lowered its price target for Molina Healthcare from $207.00 to $167.00, maintaining a Neutral rating, citing margin compression and downward trends in the government-sponsored underwriting cycle as contributing factors. Barclays also downgraded Molina Healthcare from Equalweight to Underweight, reducing its price target to $144.00 from $185.00, due to concerns over the disappointing earnings results. These developments have raised investor concerns, as reflected in the stock’s performance following the earnings announcement.
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