Molina Healthcare (MOH) Stock Price Target Cut at Cantor Fitzgerald
NEW YORK (TheStreet) -- Molina Healthcare's (MOH) - Get Report price target was lowered to $55 from $65 at Cantor Fitzgerald on Monday morning. The firm has reiterated its "hold" rating on the stock.
The new price target comes after the Long Beach, CA-based provider of Medicaid-related services posted weaker-than-expected earnings for the 2016 first quarter last week.
Molina reported adjusted earnings of 51 cents per diluted share, missing analysts' forecasts of 81 cents per share. Revenue spiked by 37% to $4.34 billion year-over-year and beat expectations of $4.17 billion.
The last year has been difficult for the managed care sector, but the company's first quarter shortfall is "remarkable" because it reflects many problems at once and fixing them could take a while, the firm said.
"MOH cited several main problems in 1Q:16: higher utilization in Ohio and Texas and specialty pharma costs, particularly in Puerto Rico. These issues were possibly exacerbated by distractions associated with some of the acquisitions the company has completed recently," Cantor Fitzgerald wrote in a note.
Shares of Molina are higher by 0.46% to $52 in pre-market trading on Monday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and notable return on equity.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MOH
