J.P. Morgan Raising Estimates On Molina Healthcare (MOH)

J.P. Morgan is raising its earnings estimates on Molina Healthcare Inc. MOH, as the company is set to report Q2 results. It rates shares at Neutral, and has a $33 price target. In the note send to clients, J.P. Morgan writes, "We consider a premium valuation to the full group as warranted as we believe that state program/Medicaid pure plays, such as Molina, are those most likely to benefit over the longer term from the coverage expansion that will occur as a result of the health reform bill. In addition, we believe that the low penetration of managed care in Medicaid (comprising only about a third of total program spend today) creates a comparably favorable organic growth backdrop, while we see the nearer-term state budgetary pressures as an offsetting factor." Shares of Molina lost 46 cents yesterday to close at $26.70.