Analyst Erin Wright from Morgan Stanley maintained a Buy rating on Cigna and keeping the price target at $390.00.
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Erin Wright has given his Buy rating due to a combination of factors that highlight Cigna’s potential for growth and stability. One of the primary reasons is the strong performance and growth prospects of Evernorth, Cigna’s health services segment. Despite some concerns about the stop-loss business and the cadence for the second half of the year, management’s focus on Evernorth’s differentiated assets suggests a positive outlook for its growth trajectory.
Moreover, the company’s emphasis on its Specialty and Care Services, along with robust execution in Pharmacy Benefit Services, underscores its strategic positioning in the healthcare market. The multiyear renewals with large clients and the expansion of the CuraScript specialty distribution business are expected to drive substantial revenue growth. Additionally, Cigna’s ability to capitalize on the specialty market, which is projected to grow significantly, further supports the Buy rating as it positions itself to outperform in this sector.
In another report released today, Barclays also maintained a Buy rating on the stock with a $354.00 price target.