UPDATE: Credit Suisse Starts Molina Healthcare (MOH) at Outperform
- S&P 500, Dow hit record highs on bank earnings boost
- Bitcoin (BTC) Drops 3% as Turkey Bans Cryptocurrency Payments Citing Lack of Regulatory Supervision
- Morgan Stanley (MS) Archegos-Related Loss Appears to be $911M
- Dollar heads for second week of losses as yields decline
- J&J (JNJ) Privately Asked Rival Covid-19 Vaccine Makers to Inspect Clotting Risks, AstraZeneca (AZN) Said Yes but Pfizer (PFE) and Moderna (MRNA) Declined - Report
Credit Suisse analyst A.J. Rice initiates coverage on Molina Healthcare (NYSE: MOH) with a Outperform rating and a price target of $260.00.
The analyst comments "Transitory 2021 Headwinds Mask Higher Earnings Power Next Year and Beyond: MOH’s 2021 EPS outlook of $12.50-13.00 includes two challenges temporarily pressuring earnings: (1) the net effect of the COVID-19 pandemic (consisting of utilization curtailment and direct cost of care, offset by risk-sharing corridors), which represents a $1.50 EPS headwind; and (2) its temporary Medicare risk score shortfall, which represents a $1.00 EPS headwind to earnings. These two impacts represent a 20% EPS headwind in 2021. Additionally, once MOH obtains its targeted margins on MCC and once Affinity is closed and synergized, MOH expects to achieve an additional EPS tailwind of at least $1.50. Thus, MOH’s pro forma run rate after the natural relaxation of temporary constraints would produce an after-tax margin of approximately 4% (in-line with its recent performance)."
Shares of Molina Healthcare closed at $233.28 yesterday.
You May Also Be Interested In
- UPDATE: B.Riley Reinstates Workhorse Group (WKHS) at Buy, 'Can Deliver Without the Post Office'
- Argus Upgrades United Continental (UAL) to Buy Citing Favorable View on Capacity Limit Plans
- Jefferies Sees Upside for Align Technology (ALGN) Earnings
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot New Coverage, New Coverage
Related EntitiesCredit Suisse, Earnings, A.J. Rice
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!