Barclays Cuts Price Target on AMERIGROUP (AGP) by 18%, Weak Quarterly Results

Barclays is maintaining its Equalweight rating on shares of AMERIGROUP (NYSE: AGP), but is cutting its price target from $77 to $63.

The company released its Q2 results below expectations with a GAAP EPS of $0.83. The firm notes that adjusted earnings were inline with their estimates, but were still well below the consensus of $1.12 per share.

The firm reports, "In addition to the lower earnings, we note that quality metrics for the quarter were weak as well. Lastly, AGP spoke about signs of rising healthcare cost trends, not seen in several quarters...In addition, while we are not adjusting our estimates, we believe there is now a higher degree of uncertainty in them, and will look to closely monitor medical costs trends for AMERIGROUP."

For more ratings news on AMERIGROUP click here and for the rating history of AMERIGROUP click here.

Shares of AMERIGROUP closed at $55.00 yesterday.

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