Morgan Stanley Lowers AMERIGROUP's EPS Estimate

According to a recent research report, Morgan Stanley has lowered AMERIGROUP Corp.'s (NYSE: AGP) EPS estimate from $4.10 to $3.85, but has increased its conviction that AGP's 2013 EPS will reach $5.00 or more.

In the report, Morgan Stanley explained, “AGP EPS should exceed $5.00 by 2013E, as margins normalize on robust top line gains achieved in 2012. Our confidence in >$5 EPS in '13E (vs. Street $4.76) has been a key driver of our OW thesis. Our forecasts do not reflect WA win or any revenue/EPS from forthcoming contract opportunities.”

Morgan Stanley maintains its $85 PT on AMERIGROUP, which closed Friday at $71.57.

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