UBS Maintains a 'Neutral' on AMERIGROUP (AGP); Q3 Leaves More Constructive 2012 Jump-Off Point

UBS maintains a 'Neutral' on AMERIGROUP (NYSE: AGP) price target raised from $49 to $58.

UBS analyst says, "FY'11 co guidance parameters intact (outside of indicating low probability of MLR on upper end of range), which would appear to embed conservative Q4 margin assumptions (even low end of MLR guid implies +60 bps seq uptick in Q4 off adj Q3 despite est 30 bps benefit of GA retro). 2012 directional commentary unchanged incl ~30% top-line growth (~40% incl Health Plus – not in UBS est) w/detailed outlook coming in Feb. We now model FY’11 EPS of $3.75 ($3.55 prior) while our ’12 EPS estimate goes to $4.05 ($3.70 prior) and embeds 2.5% net inc margin."

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

Shares of AMERIGROUP closed at $55.59 yesterday.

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