UPDATE: Oppenheimer Raises PT to $85 on AMERIGROUP

Oppenheimer raises its price target on Outperform-rated AMERIGROUP AGP to $85 from $72 a share following solid Q4. Oppenheimer says, "AGP produced solid 4Q results, and the market has smartly looked past the expected slow earnings ramp-up as the tremendous longer-term opportunity continues to grow larger. 4Q11 EPS was $0.67, vs. our estimate of $0.61, even though transient business development and litigation costs totaled 70 bps ($0.14/share). AGP issued its annual 2012 guidance parameters, which imply EPS of ~$2.50-4.50, but management suggested it could be running above the top-end of the range by year-end. Although we are maintaining our FY2012 EPS estimate of $3.86, we are raising our FY2013 EPS estimate to $5.05, from $4.77." AGP closed at $71.57 a share on Friday.