JP Morgan Reduces PT on Molina Healthcare (MOH) to $333 From $350, Keeps a Hold Rating

Molina Healthcare, Inc. (NYSE:MOH) is one of the 13 Cheap Healthcare Stocks with Huge Upside Potential. On July 7, JP Morgan analyst John Stansel maintained a neutral stance on Molina Healthcare, Inc. (NYSE:MOH), giving it a Hold rating while bringing the price target down to $333 from $350. The analyst based the rating on the company’s outlook and recent financial performance.

A doctor in scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families.

Stansel acknowledged that the company reported a preliminary fiscal Q2 adjusted EPS that was lower than expected lower than expected, primarily due to a rise in medical cost pressures across all business segments. This resulted in a drop in Molina Healthcare, Inc.’s (NYSE:MOH) 2025 EPS guidance, suggesting ongoing financial challenges.

The analyst further supported the cautious outlook on Molina Healthcare, Inc. (NYSE:MOH) with the company’s exposure to the ACA exchanges and Medicaid, both of which are undergoing cost pressure.

However, Stansel also stated that while the company’s management expects these pressures to continue into the second half of 2025, Molina Healthcare, Inc. (NYSE:MOH) maintains a stable long-term outlook.

Molina Healthcare, Inc. (NYSE:MOH) provides healthcare services. Headquartered in Long Beach, CA, the company’s operations are divided into the following segments: Medicaid, Medicare, Marketplace, and Other.

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Disclosure: None. This article is originally published at Insider Monkey.