Morgan Stanley analyst Erin Wright lowered the firm’s price target on Cigna (CI) to $355 from $390 and keeps an Overweight rating on the shares. Investor feedback was “highly mixed/negative” surrounding “costs” associated with the transition to a rebate-free model and early renewals of large contracts, but the firm argues that the “bigger picture” is that this is an important transition from a regulatory perspective and makes way for steadier PBM economics long-term. The illustrative FY26 EPS bridge indicates about $30, equates to about 1% year-over-year EPS growth from 2025, the analyst added.
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