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Sterne Agee assumed coverage on shares of Molina Healthcare (NYSE:MOH) in a research note issued on Friday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $69.00 price target on the stock. Sterne Agee’s price target points to a potential upside of 54.95% from the stock’s previous close.

The analysts wrote, “We believe MOH shares do not fully reflect normalized earnings power and investors receive post ’15 top-line growth for free. Molina shares are currently valued at just 7.0x a 2% net margin derived EPS based on ’15 premiums. “We believe the discount is a function of two factors: 1) concern about Sovaldi and other high-cost specialty pharmaceuticals treating Hepatitis-C coming to market late in ’14 and 2) anchoring to recent trough net margin levels with investors less willing to contemplate cash earnings guidance. On a cash earnings basis, MOH shares are currently valued at just 12.0x ’14 guidance (including $0.48 per share in stock-based compensation).”

Shares of Molina Healthcare (NYSE:MOH) traded up 0.29% during mid-day trading on Friday, hitting $44.66. The stock had a trading volume of 389,224 shares. Molina Healthcare has a 1-year low of $31.10 and a 1-year high of $46.17. The stock’s 50-day moving average is $43.3 and its 200-day moving average is $37.97. The company has a market cap of $2.066 billion and a P/E ratio of 75.22.

Molina Healthcare (NYSE:MOH) last issued its quarterly earnings data on Thursday, May 1st. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.11. The company had revenue of $2.07 billion for the quarter, compared to the consensus estimate of $2.06 billion. During the same quarter in the previous year, the company posted $0.64 earnings per share. The company’s revenue for the quarter was up 30.1% on a year-over-year basis. On average, analysts predict that Molina Healthcare will post $2.02 earnings per share for the current fiscal year.

Several other analysts have also recently commented on the stock. Analysts at Cantor Fitzgerald raised their price target on shares of Molina Healthcare from $35.00 to $40.00 in a research note on Thursday, May 15th. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Molina Healthcare in a research note on Monday, May 5th. They now have a $41.00 price target on the stock. Finally, analysts at Deutsche Bank raised their price target on shares of Molina Healthcare from $36.00 to $40.00 in a research note on Friday, May 2nd. They now have a “hold” rating on the stock. Seven analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $44.85.

Molina Healthcare, Inc provides medicaid-related solutions. The Company operates in two segments: Health Plans and Molina Medicaid Solutions.

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