TD Cowen Reiterates Buy Rating on Molina Healthcare (MOH) Stock

Molina Healthcare, Inc. (NYSE:MOH) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On July 28, Ryan Langston, an analyst from TD Cowen, reiterated a “Buy” rating on the company’s stock, and the associated price target was lowered to $203.00. The analyst noted that Molina Healthcare, Inc. (NYSE:MOH) continues to effectively manage the medical costs in the challenging environment, mainly in Medicaid, where it is witnessing pressures in behavioral, pharmacy, and inpatient/outpatient care.

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

Molina Healthcare, Inc. (NYSE:MOH) continues to actively work with state partners in order to restore Medicaid rates to appropriate levels. It has considered increased cost trends in the Medicare and Marketplace bids for 2026. Despite challenges, Molina Healthcare, Inc. (NYSE:MOH)’s strategic efforts and adjustments in rate filings reflect growth potential, justifying the analyst’s rating. For FY 2025, the Premium revenue is expected to be ~$42 billion, reflecting an increase of ~9% from FY 2024. Molina Healthcare, Inc. (NYSE:MOH) expects its FY 2025 GAAP earnings to be no less than $16.90 per diluted share.

Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Molina Healthcare, Inc. (NYSE:MOH) is a leading managed care company. The company is the fourth largest player in managed Medicaid and has consistently delivered industry-leading margins historically. In our view, this is thanks to Molina Healthcare’s exceptional management team and culture of operational excellence. Moreover, we think Molina Healthcare has a long runway for growth given its small scale relative to peers and untapped opportunities in their Medicare and Marketplace business segments. Recently, the Medicaid industry has come under substantial pressure due to a challenging redetermination cycle and additional headwinds from legislation under the current administration. This provided the opportunity to, in our view, purchase shares in a best-in-class managed care company at depressed valuation on trough earnings.”

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