UPDATE: J.P. Morgan Raises PT on AmeriGroup to $62 (AGP)

J.P. Morgan is out with its report today on AmeriGroup AGP, raising its PT from $49 to $62.

In a note to clients, J.P. Morgan writes, "Our December
2011 price target of $62/share (prior $49) is derived by applying a 14.5x (prior 12.5x) multiple to our 2012 earnings estimate, which compares to our group average
2012 P/E objective of 11x. We consider a premium valuation to the full group as warranted as we believe that state program/Medicaid pure plays, such as Amerigroup, are those most likely to benefit over the longer term from the coverage expansion that will occur as a result of the health reform bill."

J.P. Morgan maintains Neutral on AGP.

At the time of posting, shares of AGP were trading at $58.78, down 0.08% from Thursday's close.