Wedbush Downgrades AMERIGROUP (AGP) to Neutral; WellCare (WCG) May Be Up Next On The Chopping Block
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Price: $91.70 --0%
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade AGP Now!
Wedbush downgraded AMERIGROUP (NYSE: AGP) from Outperform to Neutral with a price target of $92.00 (from $79.00).
Analyst, Sarah James, said, "While we continue to believe in the long-term growth opportunity for Medicaid plans, we believe shares of AMERIGROUP will likely be range-bound and therefore underperform peers as we approach the anticipated 1Q13 closing of the acquisition by WellPoint (NYSE: WLP)...Though management mapped out a longer closing period, we do not foresee any prohibitive hurdles to the closing; VA Medicaid was likely the closest to being an anti-trust issue, but our state contacts indicate the combined market share (44%) will be below the 70% maximum."
"While we do not view this as an opening of the floodgates for acquisitions, we still believe WellCare (NYSE: WCG) to be an attractive M&A candidate."
For an analyst ratings summary and ratings history on AMERIGROUP click here. For more ratings news on AMERIGROUP click here.
Shares of AMERIGROUP closed at $88.79 yesterday, with a 52 week range of $37.57-$89.02.
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Analyst, Sarah James, said, "While we continue to believe in the long-term growth opportunity for Medicaid plans, we believe shares of AMERIGROUP will likely be range-bound and therefore underperform peers as we approach the anticipated 1Q13 closing of the acquisition by WellPoint (NYSE: WLP)...Though management mapped out a longer closing period, we do not foresee any prohibitive hurdles to the closing; VA Medicaid was likely the closest to being an anti-trust issue, but our state contacts indicate the combined market share (44%) will be below the 70% maximum."
"While we do not view this as an opening of the floodgates for acquisitions, we still believe WellCare (NYSE: WCG) to be an attractive M&A candidate."
For an analyst ratings summary and ratings history on AMERIGROUP click here. For more ratings news on AMERIGROUP click here.
Shares of AMERIGROUP closed at $88.79 yesterday, with a 52 week range of $37.57-$89.02.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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