Citi Raises Price Target On AMERIGROUP After Earnings (AGP)

Citi Investment Research raised its price target on AMERIGROUP Corporation AGP to $51 from $45, and is keeping its Buy rating on shares after earnings. In the research note, Citi writes, "We believe margins are at an unsustainably high level, and earnings will likely be down meaningfully next year. Still, AMERIGROUP's broad outlook for 2011 suggests earnings ranging from $3.10-4.35 next year. At the low end, the stock is fairly valued right now, in our view, but if the high end is achievable, AMERIGROUP's stock could approach the mid-$50's next year, assuming a 12.5x multiple." Shares of AGP lost 37 cents yesterday to close at $41.36, a loss of 0.9%.