AMERIGROUP Continues Medicaid Growth Opportunities

AMERIGROUP Corporation AGP hosted its Investor Day on Friday, 9/17, and while not able to provide guidance, management assured its positive underlying trends for Medicaid managed care (depressed medical costs, expansion opportunities, reasonable rate increases), Goldman Sachs reports. According to Goldman, growth on AMERIGROUP's behalf in selected markets will yield superior revenues, and it is also believed that the company can grow revenues by double digits and increase net margins by 2.5-3.5%. Texas, Florida, Ohio and Georgia are among the states expected to see the highest enrollment growth. Goldman reiterates its Neutral Rating and $39 (6-month) price target. AMERIGROUP Corporation closed Friday at $38.25.