Analyst Insight: Citigroup Inc. Chops Price Target on AmSurg Corp. (C,AMSG)

Citigroup Inc. (NYSE:C) lowered its 12-month price target on AmSurg Corp. (NASDAQ:AMSG) from $25 to $21 Friday to "reflect lower small-cap equity valuations," wrote Citigroup analyst Gary Taylor.

Taylor added: "Our relative valuation model considers earnings growth, earnings quality, reimbursement risk, FCF ROIC and B/S leverage and produces a target 2010 P/E of 12.2x, a 30% discount to the current S&P600 P/E. AMSG is currently trading at 10.4x our 2010 EPS estimate and a 15% trailing FCF yield. Earnings growth is likely to accelerate in 2012 because the annual 4-5% EPS drag from the 4-year ASC Medicare phase-in is complete and we'd expect improving commercial enrollment to spur renewed procedure growth."

SmarTrend currently has AmSurg in an Uptrend.

Since 2008, SmarTrend subscribers trading AmSurg using our alerts outperformed the stock by 64%.

We are monitoring these developments and will alert subscribers to any change in trend.

Shares of AmSurg should find initial resistance at its 50-day moving average (MA) of $19.02 and further resistance at its 200-day MA of $21.06.

In the last five trading sessions, the 50-day MA has fallen 1.41% while the 200-day MA has slid 0.36%.

Shares of the company are trading down 0.89% Friday at $17.73.

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