Citi Reviews Its Own Predictions for Amerigroup

Citi has published a report on Amerigroup (NYSE: AGP) reviewing 2Q11 performance and their own predictions.

In the report, Citi wrote, "Texas is set to award the largest RFP in the history of the managed care program in the next two weeks, which could result in major upward revisions to AMERIGROUP's 2012 revenue and earnings projections. We think the RFP favors incumbents like AMERIGROUP, since so much of the incremental revenue will come from carving in pharmacy benefits (for the whole program) and inpatient costs (for the ABD lives)."

Citi rates Amerigroup a Buy with a price target of $71.00. Amerigroup closed Friday at $55.00.