Overview#
Morgan Stanley has increased its price target for Molina Healthcare (NYSE:MOH) from $128 to $146, while keeping an Equalweight rating on the stock. Currently, shares are trading at $174.70, having risen 17.35% over the past week. Despite this surge, some analysts believe the stock is still undervalued compared to its fair value.
Earnings Performance#
The price target adjustment comes after Molina Healthcare reported its first-quarter earnings for 2026, which exceeded analyst expectations. The company achieved an adjusted earnings per share (EPS) of $2.35, surpassing the forecast of $2.17. However, Molina did experience a slight revenue miss, reporting $10.8 billion compared to the expected $10.87 billion.
Future Expectations#
Molina Healthcare has maintained its EPS and premium revenue guidance for 2026, taking a cautious stance until more clarity is available after the second quarter. The company anticipates Medicaid enrollment to be slightly lower than previous estimates, at 4.5 million, while expecting higher Marketplace enrollment at 250,000.
Analyst Insights#
Morgan Stanley has raised its EPS estimates for Molina Healthcare, projecting $5.51 for 2026, up from $5.02, and $9.00 for 2027, up from $8.50. The new price target is based on 16.3 times the firm's 2027 EPS estimate. Additionally, Barclays has also increased its price target for Molina Healthcare from $133 to $161, maintaining an Underweight rating. These adjustments reflect ongoing trends and analyst views on Molina Healthcare's financial outlook.