Wells Fargo has downgraded Molina Healthcare (MOH) from Overweight to Equal Weight, setting a new price target of $141 due to concerns over the company’s 2026 projections and lack of conservatism in guidance. Molina Healthcare’s financial health shows mixed signals with declining margins, increased debt, and heavy reliance on Medicaid contracts, although valuation metrics suggest potential undervaluation. The downgrade reflects skepticism about the company’s ability to reduce acuity pressures in Medicaid and consistent revenue/expense volatility.
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Molina Healthcare (MOH) Downgraded by Wells Fargo as Guidance Faces Scrutiny
Wells Fargo has downgraded Molina Healthcare (MOH) from Overweight to Equal Weight, setting a new price target of $141 due to concerns over the company’s 2026 projections and lack of conservatism in guidance. Molina Healthcare’s financial health shows mixed signals with declining margins, increased debt, and heavy reliance on Medicaid contracts, although valuation metrics suggest potential undervaluation. The downgrade reflects skepticism about the company’s ability to reduce acuity pressures in Medicaid and consistent revenue/expense volatility.