TD Cowen analyst Charles Rhyee reiterated a Buy rating on Cigna (CI – Research Report) today and set a price target of $380.00.
Charles Rhyee has given his Buy rating due to a combination of factors including Cigna’s strategic shift following the sale of its government business to HCSC. This move allows Cigna to concentrate on its Evernorth segment, which is poised to benefit from growth in specialty services and the adoption of biosimilars. Additionally, Cigna’s reduced exposure to Medicare Advantage and Medicaid is seen positively, as it shields the company from government-related challenges and market volatility.
Moreover, the focus on Evernorth’s capabilities in specialty pharmacy and biosimilars is expected to drive earnings growth beyond long-term targets. Despite potential short-term uncertainties surrounding PBM reform, Rhyee believes that any legislative changes will ultimately provide clarity and alleviate concerns. While an immediate re-rating of shares is not anticipated, there is an expectation that Cigna’s stock could gradually move towards a higher valuation multiple, reflecting its strategic positioning and growth prospects.
In another report released on March 20, Cantor Fitzgerald also maintained a Buy rating on the stock with a $365.00 price target.