Deutsche Bank Has Hold On Molina Healthcare (MOH)

Deutsche Bank has a Hold rating and $26 price target on Molina Healthcare, Inc. MOH. In a recently released research report, Deutsche Bank says that inpatient utilization trends have tracked well for the in the third quarter. In the research report, Deutsche Bank writes, "We also believe that volumes have probably decelerated more sharply in the Commercial and Medicaid markets as compared to Medicare, since we think that cyclical factors are largely driving the soft volume trends. The challenge for the stocks though is that the minimum MLR regs will make it structurally impossible for Commercial MCOs to continue to see favorable upside on their MLRs in 2011. This means that while the managed care companies will likely beat the Street in 3Q, Street estimates probably won't rise that significantly for 2011, particularly for the Commercial MCOs." Shares of Molina Healthcare, Inc. gained 59 cents or 2.25% to close at $26.94 on Friday.