Jefferies Downgrades Molina Healthcare (MOH) to Underperform, High Execution Risk
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Price: $38.04 -0.37%
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
2 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade MOH Now!
Jefferies downgraded Molina Healthcare (NYSE: MOH) from Hold to Underperform with a price target of $19.00 (from $20.00).
"Similar to HNT, MOH is fighting battles on several fronts. For MOH, EPS is likely to be negative in '12. This isn't a call on Wednesday's Investor Day, but rather on the high execution risk: in TX Medicaid (109% MLR), CA (new ABD lives running at 95% MLR), and WI (121% MLR). MOH's stock has surged 5+ points (31%) since disclosing the Hidalgo, TX issue in early June, and is trading at a rich 17.4x '13E EPS. Yes, '13 EPS consensus still doesn't reflect full earnings power, but it still may be too high. Additionally, we see a take-out above this valuation - with the execution hurdles ahead
of MOH - as a low probability."
FY12 EPS goes down from $1.66 to $1.33.
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 $23.14 yesterday, with a 52 week range of $13.93-$36.83.
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"Similar to HNT, MOH is fighting battles on several fronts. For MOH, EPS is likely to be negative in '12. This isn't a call on Wednesday's Investor Day, but rather on the high execution risk: in TX Medicaid (109% MLR), CA (new ABD lives running at 95% MLR), and WI (121% MLR). MOH's stock has surged 5+ points (31%) since disclosing the Hidalgo, TX issue in early June, and is trading at a rich 17.4x '13E EPS. Yes, '13 EPS consensus still doesn't reflect full earnings power, but it still may be too high. Additionally, we see a take-out above this valuation - with the execution hurdles ahead
of MOH - as a low probability."
FY12 EPS goes down from $1.66 to $1.33.
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 $23.14 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
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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