Cigna: Regulatory Overhang Eases, Evernorth Growth Drives Renewed Buy Rating and Earnings Upside

Analyst Charles Rhyee of TD Cowen maintained a Buy rating on Cigna, boosting the price target to $338.00.

Charles Rhyee has given his Buy rating due to a combination of factors tied to Cigna’s improving risk profile and growth visibility. He views the recent quarter and the introduction of 2026 guidance as a turning point, since prior uncertainties around stop-loss performance and pharmacy benefit management reform have been substantially addressed, including through the FTC settlement that eases regulatory overhang on the PBM franchise.

With these key issues largely contained, he argues that Cigna’s earnings outlook is now more dependable, allowing investors to refocus on the company’s structural growth drivers, particularly in the Evernorth/SCS segment. Management’s expectations for double‑digit pre‑tax income expansion, strong specialty script growth, and earnings growth at the upper end of its long‑term range underpin his view that the stock offers attractive upside from current levels.