UPDATE: Goldman Sachs Upgrades Universal American to Neutral

Goldman Sachs is out with its report today on Universal American (NYSE: UAM), upgrading UAM from Not Rated to Neutral.

In a note to clients, Goldman Sachs writes, "We have removed the Not Rated designation from UAM and moved to a Neutral rating, with a 12-month price target of $12. Our 2011E/2012E/2013E EPS go to -$0.20/$0.55/$0.80 from $1.80/$1.80/NA, with sequential EPS improvement driven by administrative cost reductions as UAM downsizes overhead associated with the divested Medicare PDP business (which accounts for all of our earnings revisions)."

Shares of UAM closed Thursday at $10.96, down 0.36% from Thursday's close.