Molina Healthcare downgraded to Underperform from Neutral at BofA

BofA downgraded Molina Healthcare to Underperform from Neutral with a $439 price target. The firm sees a less attractive risk-reward compared to other insurers under coverage, and the firm is concerned that Molina and other Medicaid insurers are likely to face rate pressure after a period of elevated margins, the analyst tells investors in a research note. Additionally, BofA says the upcoming election holds some risk as a Trump presidency would likely signal a return to anti-ACA rhetoric and restrictions on Medicaid.