Goldman Sachs Maintains Neutral on Molina Healthcare (MOH)

Goldman Sachs is out with its report today on Molina Healthcare MOH, maintaining Neutral. In a note to clients, Goldman Sachs writes, "While we continue to take a positive view of the Medicaid stocks given the long-term growth opportunity, we think state budget issues will most likely create headwinds for Medicaid managed care this year. Meanwhile, the moderate cost trend is a positive for the entire managed care sector. We maintain our 12-month price target at $42 based on 16.1x our 2012 EPS of $2.60 from our SOP and M&A valuation model." At the time of posting, shares of MOH were trading at $40.04, up 2.09% from Monday's close.