UBS Lowers Estimates & Price Target on AMERIGROUP (AGP) on Investor Day Takeaways
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Price: $91.70 --0%
Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
Rating Summary:
3 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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UBS maintains a 'Neutral' on AMERIGROUP (NYSE: AGP) price target lowered from $53 to $49.
UBS analyst says, "Medical cost trends in crosshairs at Amerigroup Investor Day in NYC - With higher med costs representing the primary driver of AGP’s lowered 2011 outlook, co spent considerable time here at investor day. While co previously sized Q2 trend at below 3-5% LT range, more claims data indicates trend higher than prev est and in the 3-5% range, w/updated AGP guid assuming trend continues to this higher level. With AGP discussion appearing to run counter to Medicaid peer commentary earlier in week, key question clearly around whether this is AGP-specific issue or indicative of broader increase that AGP is seeing ahead of peers."
"FY11E EPS goes to $3.60 ($4.05 prior) while ’12E EPS now $3.75 ($4.40 prior). Look for higher med costs to leave margins pressured in 2H’11 / 1H’12 relative to 2.5-3.5% Long-Term company target, with 2H’12 improvement levered to 2012’s rate updates."
For more ratings news on AMERIGROUP click here and for the rating history of AMERIGROUP click here.
Shares of AMERIGROUP closed at $44.83 yesterday.
UBS analyst says, "Medical cost trends in crosshairs at Amerigroup Investor Day in NYC - With higher med costs representing the primary driver of AGP’s lowered 2011 outlook, co spent considerable time here at investor day. While co previously sized Q2 trend at below 3-5% LT range, more claims data indicates trend higher than prev est and in the 3-5% range, w/updated AGP guid assuming trend continues to this higher level. With AGP discussion appearing to run counter to Medicaid peer commentary earlier in week, key question clearly around whether this is AGP-specific issue or indicative of broader increase that AGP is seeing ahead of peers."
"FY11E EPS goes to $3.60 ($4.05 prior) while ’12E EPS now $3.75 ($4.40 prior). Look for higher med costs to leave margins pressured in 2H’11 / 1H’12 relative to 2.5-3.5% Long-Term company target, with 2H’12 improvement levered to 2012’s rate updates."
For more ratings news on AMERIGROUP click here and for the rating history of AMERIGROUP click here.
Shares of AMERIGROUP closed at $44.83 yesterday.
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