Analyst Kevin Fischbeck of Bank of America Securities reiterated a Buy rating on Cigna, with a price target of $378.00.
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Kevin Fischbeck’s rating is based on several strategic factors influencing Cigna’s future growth prospects. Despite a recent decline in stock price due to concerns over Pharmacy Benefit Manager (PBM) earnings revisions, Fischbeck views these challenges as temporary. The company is facing headwinds from re-contracting with major PBM clients and transitioning to a new rebate-free model, which are expected to impact earnings in the short term. However, these initiatives are seen as necessary steps to address regulatory concerns and improve cost transparency, setting the stage for long-term growth.
Fischbeck believes that while the 2026 earnings per share (EPS) might see a temporary dip, Cigna is positioned to recover and grow in subsequent years. The investments in the new PBM model are expected to become a growth driver by 2028, as the company transitions its clients to this model. Additionally, the company’s efforts in stop-loss repricing are anticipated to aid growth in 2027. With a price objective of $378.00 USD, significantly higher than the current price, Fischbeck reiterates a Buy rating, confident that Cigna’s strategic initiatives will lead to better growth in the future.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $332.00 price target.