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Fly News Breaks for June 27, 2018
CNDT, DXC, MOH
Jun 27, 2018 | 10:16 EDT
JPMorgan analyst Tien-tsin Huang notes that Molina (MOH) announced its intent to sell its Medicaid Management System to DXC Technology (DXC) for a total purchase price of $220M. The analyst is encouraged with the deal as it strengthens DXC's positioning in the Medicare and Medicaid implementation segment, as he anticipates the combined company to serve 24 U.S. states/regions. However, Huang views the deal to be competitively negative for Conduent (CNDT), who implements MMIS for 10 states/regions in the U.S. The analyst reiterates an Overweight rating on DXC's shares and a Neutral rating on Conduent.
News For MOH;DXC;CNDT From the Last 2 Days
MOH
Mar 28, 2024 | 06:51 EDT
BofA downgraded Molina Healthcare (MOH) to Underperform from Neutral with a $439 price target. The firm, which is concerned that Molina and the Medicaid industry more broadly are likely to face rate pressure after a period of elevated margins, sees a less attractive risk/reward for Molina compared to other insurers the firm covers, the analyst tells investors. Molina is now trading roughly at parity with the firm's top pick in the space, UnitedHealth (UNH), compared to a 22% discount that had been seen over the last five years, helping to underscore the firm's view that "sentiment for Medicaid is nearing a top just at a time when Medicare is reaching a bottom," the analyst added.