Citi Reports Highlights From Meetings With AGP

Citi is maintaining its Buy rating and its $81 price target on Amerigroup AGP after meetings with the company's management. Says Citi, in the report, “In addition to the state conversions between now and 2014, and the federal expansion in 2014, the conversion of long-term enrollees is the next big opportunity on the horizon. The spending on LTC today dwarfs what states incur on their TANF and ABD populations, so if states start to convert LTC lives in any meaningful way, it should enable Medicaid plans to sustain their current valuation multiples beyond 2014.” AGP closed at $63.25 yesterday.