Deutsche Bank Reaffirms Buy on AmeriGroup

Deutsche Bank is out with its report today on AmeriGroup AGP, reaffirming Buy. In a note to clients, Deutsche Bank writes, "We hosted several days of investor meetings with AGP's management team in New York and the Mid-Atlantic. The focus of the meetings was on the robust Medicaid managed care business pipeline which is sized at $60+ billion from 2011-2013. While AGP highlighted multiple individual growth opportunities, the Texas reprocurement is by far the most important. We boost 2011 EPS estimate again on favorable med costs. Reaffirm BUY based on our expectation for doubledigit organic annual revenue growth in 2012-2014." Deutsche Bank maintains a $73 PT on AGP. Shares of AGP closed Wednesday' at $64.93, down 1.80% from Tuesday's close.