Wells upgrades Molina to Overweight with Medicaid risk priced in

Wells Fargo upgraded Molina Healthcare (MOH) to Overweight from Equal Weight with a price target of $372, up from $295. The firm says its analysis of Medicaid policy leaves it “increasingly comfortable” that Medicaid stocks “have adequately priced in risks of reasonably likely legislative outcomes.” Molina’s risk/reward has improved, as there are increasing indications that the “most disruptive cuts to Medicaid are unlikely to be politically viable,” the analyst tells investors in a research note. Wells believes that while the company’s Q4 results and lower guidance “reset the base lower,” Molina’s story for 2026 is generally intact, supported by embedded earnings commentary and Medicaid rates recovery.