Street Calls of the Week
Investing.com - Cantor Fitzgerald maintained its Neutral rating and $210.00 price target on Molina Healthcare (NYSE:MOH), currently trading at $176.11, as 2026 Marketplace rates are finalized across 15 states. According to InvestingPro data, the stock trades at an attractive P/E ratio of 8.7, with analyst targets ranging from $153 to $330.
The research firm noted that the majority of finalized rates align with payor proposals, though they fall below the 30%+ increases initially hoped for in 2026. Cantor’s analysis indicates that payors are averaging final rates within 1% of what they proposed.
Molina Healthcare specifically received final rates approximately 0.2% higher than proposed, according to Cantor’s weighted-average estimate across the analyzed states. Competitors showed similar patterns, with Centene receiving rates 0.3% above proposed and Elevance Health 0.4% higher.
The firm highlighted certain states as less flexible in rate negotiations, particularly New York, where Centene’s proposed 8.1% increase was reduced to a final rate of 2.9%, and UnitedHealth’s proposed 36.6% increase was cut to 9.1%. North Carolina and Indiana were also identified as less accommodating states.
Cantor Fitzgerald maintained its cautious outlook on the 2026 marketplace environment, citing political uncertainty surrounding CMS regulations and the scheduled expiration of premium-enhanced subsidies on December 31, 2025. InvestingPro analysis indicates the stock is currently undervalued, with additional insights and a comprehensive Pro Research Report available for deeper analysis of the company’s prospects amid these regulatory challenges.
In other recent news, Molina Healthcare reported its second-quarter earnings for 2025, with an adjusted earnings per share (EPS) of $5.48, which did not meet the forecasted $5.82. However, the company exceeded revenue expectations, reporting $11.43 billion compared to the anticipated $10.94 billion. Despite the revenue beat, the earnings miss was a notable development for investors. Additionally, Cantor Fitzgerald maintained its Neutral rating on Molina Healthcare, keeping the stock price target at $210. The firm raised concerns about Molina’s 2026 assumptions, particularly in Florida, where the company requested a 41% rate increase while aiming to maintain the same profit margins as in 2025. These recent developments have captured the attention of investors and analysts alike.
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