Jefferies Downgrades AMERIGROUP (AGP) to Hold; Falling In-line with Acquisition; Potential Risks
Tweet Send to a FriendGet Alerts AGP Hot Sheet
Price: $91.70 --0%
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Trade AGP Now!
Jefferies downgraded AMERIGROUP (NYSE: AGP) from Buy to Hold with a price target of $92.00 (from $95.00).
Analyst, David Windley, said, "The WellPoint (NYSE: WLP) transaction rewards AGP shareholders fairly for very attractive growth opportunities in both Medicaid and Dual Eligible populations. The premium also gives a nod to the strong systems and management team that AGP brings. Our previous $95 PT captured AGP's market share in Medicaid RFPs, the Dual Eligible population, and Medicaid Expansion."
Potential risks: For AGP, we see little risk. Regulatory approvals should be fairly clean. For WLP shareholders, the risks revolve around rates, timing, and execution. In our view, WLP has paid AGP shareholders full, risk-adjusted value for the future opportunity.
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 $89.45 yesterday, with a 52 week range of $37.57-$89.54.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, David Windley, said, "The WellPoint (NYSE: WLP) transaction rewards AGP shareholders fairly for very attractive growth opportunities in both Medicaid and Dual Eligible populations. The premium also gives a nod to the strong systems and management team that AGP brings. Our previous $95 PT captured AGP's market share in Medicaid RFPs, the Dual Eligible population, and Medicaid Expansion."
Potential risks: For AGP, we see little risk. Regulatory approvals should be fairly clean. For WLP shareholders, the risks revolve around rates, timing, and execution. In our view, WLP has paid AGP shareholders full, risk-adjusted value for the future opportunity.
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 $89.45 yesterday, with a 52 week range of $37.57-$89.54.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: BofA/Merrill Lynch Downgrades Cliffs Natural Resources (CLF) to Underperform
- Gabelli Downgrades Nexstar Broadcasting Group (NXST) to Hold
- Keefe, Bruyette & Woods Downgrades Lincoln National (LNC) to Market Perform
Create E-mail Alert Related Categories
Analyst PT Change, DowngradesRelated Entities
Jefferies & Co
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
