D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Cantor Fitzgerald maintained its Overweight rating and $356.00 price target on Molina Healthcare (NYSE: NYSE:MOH) stock on Tuesday. According to InvestingPro data, the stock currently trades at $290.25, with analyst targets ranging from $291 to $414, suggesting potential upside. The company maintains a GREAT financial health score of 3.18.
The research firm addressed the impact of tightened work requirements on Medicaid enrollees, noting these requirements now apply to adults with dependent children older than 14, whereas the House version exempted all adults with dependent children. As a prominent player in the Healthcare Providers & Services industry with $40.29 billion in revenue and 16.24% growth over the last twelve months, Molina Healthcare appears well-positioned to navigate these changes.
Cantor Fitzgerald estimates work requirements will have a limited impact on Molina Healthcare despite the stricter Senate version of the bill. The Congressional Budget Office projects the House version would result in approximately 4.8 million people, or 6% of total Medicaid enrollees, losing coverage due to work requirements.
The firm calculates that if the affected population consists primarily of Temporary Assistance for Needy Families (TANF) recipients, who represent 17% of the $880 billion total Medicaid spend and 48% of 79 million Medicaid enrollees, the financial impact would be approximately 1% of Medicaid spending.
This enrollment reduction aligns with Cantor Fitzgerald’s projection of a 0.6% impact on 2026 earnings per share for both Molina Healthcare and Centene (NYSE:CNC) Corporation. InvestingPro analysis indicates the stock is currently undervalued, with 8 additional ProTips available to subscribers, including insights on cash flow strength and market position.
In other recent news, Molina Healthcare reported strong financial results for the first quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $6.08, surpassing the forecast of $5.97, and reported revenue of $11.15 billion, which was higher than the projected $10.83 billion. Notably, successful contract awards in Nevada and Illinois are expected to contribute significantly to future growth. Morgan Stanley (NYSE:MS) initiated coverage on Molina Healthcare with an Overweight rating, citing the company’s potential for premium revenue growth and maintaining industry-leading margins. The firm also highlighted opportunities in Dual Eligible Special Needs Plans, which are projected to grow significantly in the coming years. Cantor Fitzgerald reaffirmed its Overweight rating on Molina Healthcare, setting a price target of $356, and expressed confidence in the company’s valuation and potential for improved margins in Medicaid and Medicare by 2025. The company’s ability to exceed expectations in the Medicaid Medical (TASE:BLWV) Loss Ratio has been seen as a positive development. Molina Healthcare has confirmed its earnings per share guidance for 2025 and reiterated its long-term growth expectations, aiming for a 13-15% increase.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.