After Molina Healthcare announced leadership changes earlier this afternoon, Stifel analyst Thomas Carroll said he believes Mario and John Molina were among the largest barriers to a sale of the company and this news could increase speculation about a possible deal. However, he thinks that any near-term sale is unlikely given the current uncertainties the company faces and other "solid" assets that are available to potential buyers. Carroll, who said the change may usher in a new era where continued revenue growth may be paired with more consistent earnings, keeps a Hold rating on Molina shares.

Wells Fargo lowered the firm's price target on Molina Healthcare to $375 from $410 and keeps an Equal Weight rating on the shares. Higher-than-expected Medicaid MLR will bear monitoring, says the firm, which is lowering 2024 EPS slightly to reflect its perception of tighter guidance. Texas win expected to offset Florida and Virginia on EPS power basis, but timing suggests 2025 EPS needs to come down, Wells adds.