Molina Healthcare’s Q1 2026 EPS surged to $2.35, doubling consensus, as Bank of America upgrades the stock to Buy with a $250 target.
Value investor Seth Klarman’s Baupost Group disclosed an $84,460,000 stake in Molina Healthcare (MOH), ranking it among top 2026 picks. The managed care firm, focused on Medicaid and Medicare, reported Q1 2026 adjusted EPS of $2.35, well above the $1.29 estimate, signaling a cyclical recovery after margin pressures.
Molina’s CEO previously identified 2026 as the trough for margins, with states expected to adjust reimbursement rates higher. Bank of America responded with a double upgrade to Buy, raising its price target to $250 and projecting 2029 EPS of $30, nearly double the Street’s $17.32 forecast.
The stock surged 15% following the earnings beat, reflecting investor confidence in the Medicaid cycle’s rebound. Analysts highlight Molina’s long-term state contracts and expertise in low-income healthcare as key competitive advantages.