Wedbush Reiterates Outperform on Molina Healthcare (MOH)

Wedbush is out with its report today on Molina Healthcare (NYSE: MOH), reiterating Outperform.

In a note to clients, Wedbush writes, "We believe Molina's multiple of 18.6x does not fully reflect the true earnings potential in light of continued moderate utilization, opportunity for multiple expansion, or growth from the $40B RFP pipeline and 2014 Medicaid expansion. We reiterate our OUTPERFORM rating and price target of $45 which represents an 18.6x multiple of our 2011 estimate of $2.41."

Shares of MOH closed Monday at $39.22.