TD Cowen analyst Charles Rhyee has maintained their bullish stance on CI stock, giving a Buy rating on August 1.
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Charles Rhyee has given his Buy rating due to a combination of factors that suggest Cigna’s stock is undervalued following an overly negative market reaction to their second-quarter results. He believes that the pressure from the Health Insurance Exchange (HIX) is manageable and that the company’s management is capable of absorbing these pressures through strengths in other lines of business and strategic cost management.
Furthermore, Rhyee highlights the strong momentum in Cigna’s Specialty and Care Services, along with solid trends in their Pharmacy Benefit Management (PBM) segment, which should offset any potential weaknesses. He also notes that the company’s guidance for the third quarter is conservative, even considering increased investments in patient experience. His analysis suggests that Cigna’s earnings per share estimates for 2025 and 2026 remain strong, supporting a price target of $387 based on a discounted cash flow analysis.
In another report released on August 1, Barclays also maintained a Buy rating on the stock with a $354.00 price target.