BofA sees earnings rebound for Centene, Molina if Medicaid margins improve

Molina Healthcare

21/05/2026 15:29

** 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

 (Reporting by Kunal Das in Bengaluru)

 ((Kunal.Das2@thomsonreuters.com;))