Barclays Cuts Estimates and Price Target on Molina Healthcare (MOH); 8-K News Creates Serious Earnings Pressure
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Price: $37.58 +0.21%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade MOH Now!
Barclays maintains an 'Equalweight' on Molina Healthcare (NYSE: MOH) price target of $21.00 (from $31.00).
Analyst, Joshua R. Raskin, said, "Molina released an 8-K announcing serious
earnings pressures related to its recent STAR+PLUS expansion in Texas. As a
reminder, the company was one of the main "benefactors" of the recent March 1,
2012 expansion of Medicaid managed care. The company took on the largest
amount of new revenues with an estimated 40% of the total expansion."
Overall, Rasking doesn't hold much confidence in the Healthcare company's ability to rectify the situation quickly. In order to improve profitability, he believes the state of Texas will have to intervene.
Bottom line: Raskin cuts estimates on MOH for FY12 from $1.80 to $0.90 and FY13 from $1.80 to $1.30, but leaves with an ounce of good news for Molina: These situations happen somewhat frequently in new markets.
For an analyst ratings summary and ratings history on Molina Healthcare click here. For more ratings news on Molina Healthcare click here.
Shares of Molina Healthcare closed at $25.76 yesterday, with a 52 week range of $13.93-$36.83.
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Analyst, Joshua R. Raskin, said, "Molina released an 8-K announcing serious
earnings pressures related to its recent STAR+PLUS expansion in Texas. As a
reminder, the company was one of the main "benefactors" of the recent March 1,
2012 expansion of Medicaid managed care. The company took on the largest
amount of new revenues with an estimated 40% of the total expansion."
Overall, Rasking doesn't hold much confidence in the Healthcare company's ability to rectify the situation quickly. In order to improve profitability, he believes the state of Texas will have to intervene.
Bottom line: Raskin cuts estimates on MOH for FY12 from $1.80 to $0.90 and FY13 from $1.80 to $1.30, but leaves with an ounce of good news for Molina: These situations happen somewhat frequently in new markets.
For an analyst ratings summary and ratings history on Molina Healthcare click here. For more ratings news on Molina Healthcare click here.
Shares of Molina Healthcare closed at $25.76 yesterday, with a 52 week range of $13.93-$36.83.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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