Molina Healthcare price target lowered to $400 from $440 at Truist

Truist analyst David MacDonald lowered the firm’s price target on Molina Healthcare to $400 from $440 but keeps a Buy rating on the shares as part of a broader research note previewing Q2 results in Healthcare Services. The sector offers “attractive core demand drivers”, ongoing M&A opportunity, and strong relative positioning, and while “ongoing selectivity” remains important, the firm remains bullish on the group’s long-term drivers – demographics, move to value-based care, and site of service redirection – underpinning its solid growth, the analyst tells investors in a research note. For the company, Truist notes that the recent RFP activity has been somewhat mixed, but also sees Molina challenging select awards while citing its estimated $60B premium revenue RFP opportunity over the next three years.