UBS Reiterates Buy Rating on CIGNA (CI)

UBS analyst AJ Rice reiterated a Buy rating and $390.00 price target on CIGNA (NYSE: CI).

The analyst commented, "We co-hosted meetings with Cigna management at the Evernorth Innovation Lab for investors yesterday. In this note, we offer our takeaways. Having exited the MA at the top of the market, Cigna management expressed considerable optimism about its current business mix of commercial healthcare, pharmacy benefit management, and specialty drug and other care services. All-in, we walk away positive on our investment thesis believing the company can continue to deliver on its target of low-double digit earning growth over time, aided because it does not face the problems plaguing government related programs. A key focus point for attendees was the company's GLP1 announcement, around which we provide more company color in the note. To summarize, the new GLP1 program is geared towards the client base that does not currently cover GLP1s for weight loss (half of the Evernorth book). The lower net cost for GLP1s flows to all clients. The key focus of the new offering is to allow more people to access GLP1s, while balancing the cost share between the plan sponsor and the patient."

For an analyst ratings summary and ratings history on CIGNA click here. For more ratings news on CIGNA click here.

Shares of CIGNA closed at $312.68 yesterday.

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