Cigna downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Cigna (CI) to Market Perform from Outperform with a $323 price target The firm cites underperformance in the company’s employer stop loss business, coupled with pharmacy benefit manager policy uncertainty which it believes will make the stock “more difficult to outperform over the coming months” for the downgrade. Cigna’s 2024 cost pressures from high-cost claimants and 2025 mispricing decreases the outlook for its Healthcare segment earnings, the analyst tells investors in a research note. Bernstein also sees margin risks from policy changes of up to 5%-10% over the next 5-10 years.