Molina Healthcare upgraded to Neutral at BofA on ‘high confidence’ in EPS growth

BofA analyst Kevin Fischbeck upgraded Molina Healthcare to Neutral from Underperform with unchanged $388 price target. The analyst states that he has "relatively high confidence" in the company’s 13%-18% EPS CAGR through 2025. While Molina has done a "good job" in driving mid-to-high teen earnings growth by being able to identify "high visibility targets" however, he remains somewhat cautious on Medicaid margins on risk that Medicaid redeterminations would "worsen the risk pool", Fischbeck tells investors in a research note.