Molina Healthcare (NYSE: MOH) has had a very difficult year. The stock trades around $138/share, down more than 53% as higher medical costs and weaker margins pressured results. Revenue growth remains steady, but profitability has reset to much lower levels, which has kept investor sentiment cautious.
Recently, Molina announced several updates on state contract renewals and Medicaid redetermination trends. The company also highlighted cost management initiatives designed to improve visibility into medical expenses after a volatile period. These developments suggest Molina is working to stabilize performance even as the broader managed care backdrop remains challenging.
This article reviews where Wall Street analysts expect Molina Healthcare to trade by 2027. We combined consensus targets with TIKR’s valuation model to outline the stock’s potential path. These figures reflect analyst expectations and are not TIKR’s own predictions.
Find out what a stock’s really worth in under 60 seconds with TIKR’s new Valuation Model (It’s free) >>>
Analyst Price Targets Suggest Solid Upside
Molina trades at about $138/share today. The average analyst price target sits near $173/share, which implies roughly 25% upside. The range between high and low targets is fairly tight, signaling that analysts expect stabilization rather than extreme moves from here.
- High estimate: $220/share
- Low estimate: $144/share
- Median target: $170/share
- Ratings: 3 Buys, 12 Holds, 2 Sells
Most analysts remain cautious due to margin uncertainty, but the current share price already reflects significant pessimism. For investors, this means sentiment could shift quickly if medical cost trends begin to stabilize.
Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free) >>>
Molina Healthcare: Growth Outlook and Valuation
The company’s fundamentals appear steady, but profitability is running below historical levels:
- Revenue is expected to grow about 7% through 2027
- Operating margins are forecast to remain near 3%
- Shares trade at roughly 11x forward earnings
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 11x forward P E suggests about $195/share by 2027
- That implies roughly 41% upside, or around 18% annualized returns
These numbers show that Molina can recover meaningfully even without strong earnings acceleration. The stock looks inexpensive relative to its history, which means upside comes from stabilization rather than rapid growth.
For investors, Molina is more of a recovery story than a momentum play. The opportunity depends on improved visibility in medical costs and a return to more typical margin levels.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
What’s Driving the Optimism?
Molina continues to grow membership and maintain strong relationships with state health programs. Recent contract updates and operational changes show that management is focused on strengthening the core business while improving stability across its plans.
The company has also been working to enhance internal processes and tighten cost oversight. For investors, these developments indicate a fundamentally durable business with a clear path to earnings recovery once cost trends normalize.
Bear Case: Cost Trends and Margin Pressure
The biggest risk to Molina’s outlook is continued volatility in medical costs. The sector has experienced unpredictable claim patterns, and Molina’s lean margin structure increases sensitivity to any negative surprises.
The regulatory environment also creates uncertainty, as Medicaid redeterminations and rate adjustments can shift quickly. For investors, the concern is that margins may take longer to recover, which could delay a meaningful rerating of the stock.
Outlook for 2027: What Could Molina Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model points to a potential value of $195/share by 2027, which represents about 41% upside from today’s price and annualized returns of roughly 18% over the next 2.1 years.
This outlook reflects a steady recovery rather than an aggressive one. Meaningful upside beyond this would require clearer improvement in medical cost trends and a faster rebound in operating margins. Without that, investors should expect a gradual and measured recovery. For investors, Molina looks like a stable long term operator trading at a discounted valuation, with upside tied to improved cost visibility and restored profitability.
AI Compounders With Massive Upside That Wall Street Is Overlooking
Everyone wants to cash in on AI. But while the crowd chases the obvious names benefiting from AI like NVIDIA, AMD, or Taiwan Semiconductor, the real opportunity may lie on the AI application layer where a handful of compounders are quietly embedding AI into products people already use every day.
TIKR just released a new free report on 5 undervalued compounders that analysts believe could deliver years of outperformance as AI adoption accelerates.
Inside the report, you’ll find:
- Businesses already turning AI into revenue and earnings growth
- Stocks trading below fair value despite strong analyst forecasts
- Unique picks most investors haven’t even considered
If you want to catch the next wave of AI winners, this report is a must-read.
Find out what your favorite stocks are really worth (Free with TIKR) >>>
