Cigna: Solid Execution but Uncertain PBM Economics Support Neutral Hold Rating and $300 Target

Stephen Baxter, an analyst from Wells Fargo, maintained the Hold rating on Cigna. The associated price target is $300.00.

Stephen Baxter has given his Hold rating due to a combination of factors tied to both solid execution and lingering uncertainties. Cigna’s latest quarter delivered earnings slightly above expectations, and 2026 guidance largely aligned with the market, but softer medical loss trends and slowing core specialty growth raise questions about the quality and sustainability of those results.

At the same time, the PBM segment is in a major transition to a rebate‑free model following the FTC settlement, and while management expects margins to remain resilient, Baxter views long‑term PBM economics as still hard to predict. With his price target unchanged at $300, based on a reasonable multiple of forward earnings and a balanced upside/downside PBM scenario analysis, he sees the current valuation as fairly reflecting both the opportunities and the execution and regulatory risks, supporting a neutral, Hold stance.

In another report released on January 27, Bernstein also maintained a Hold rating on the stock with a $307.00 price target.