BUZZ-BofA sees earnings rebound for Centene, Molina if Medicaid margins improve
Bank of America Corp BAC | 0.00 | |
Molina Healthcare, Inc. MOH | 0.00 | |
Centene Corporation CNC | 0.00 |
** BofA Global Research says it is bullish on health insurers Centene CNC.N and Molina MOH.N; says cos could deliver 4–6x earnings growth by 2029 versus 2026 guidance if Medicaid margins return to target levels
** Medicaid is the U.S. government health insurance program for low-income individuals, with costs shared between states and the U.S. government
** Brokerage expects profits to bottom in 2026, with recovery from 2027 as Medicaid payments from states catch up with rising healthcare costs
** Adds current weak profitability could push states to increase reimbursement rates to reflect higher medical costs
** Flags Q2 as a key moment for signs of improvement and potentially setting the stage for larger beats and raises
** Raises CNC PT to $72 on early signs of stabilisation
** Including session's move, CNC up 41% and MOH up 2.9% YTD