Molina Healthcare’s deal for California assets a ‘nice M&A pickup’, says Truist

Truist analyst David MacDonald keeps a Buy rating and $365 price target on Molina Healthcare (MOH) after the company announced that it has entered into a definitive agreement to acquire Bright Health Group’s (BHG) Medicare business in California for $510M. The firm remains positive on the company’s strong positioning around M&A and believes that the deal further validates the company’s repeatable strategy of acquiring and improving complementary assets with attractive synergy opportunities, the analyst tells investors in a research note.