UPDATE: Bank of America Downgrades Amerigroup from Buy to Underperform

Bank of America has published a research report on Amerigroup Corp (NYSE: AGP) downgrading the company's stock and lowering the price target.

In the report, Bank of America wrote, "We are waiting for EPS estimates to reset lower. Shares trade at 13x our 2012 EPS estimate, a 5% discount to historical averages, which includes the awarded Texas RFP. Our $46 P.O. uses a 10% discount more consistent with peer valuations."

Bank of America downgraded Amerigroup from Buy to Underperform and lowered the price target to $46.00. Amerigroup closed Tuesday at $49.43.