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Cigna Gets Price Target Bumps By Analysts After Solid Q2 Beat, Guidance Raise

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  • Stephens raised the price target on Cigna Corp (NYSE: CI) to $325 from $315 on higher 2022E-2024E adjusted EPS estimates, with an Overweight rating.

  • The analyst says that while Cigna was the last managed care organization major to report 2Q22 earnings, it was still a critical print to help investors gauge the company's ongoing traction in achieving its 2022 margin improvement targets for the Healthcare segment.

  • "Results were encouraging; both volumes (membership) and gross margin (MLR) came in better in Healthcare, the source of CI's relative equity underperformance in 2021," notes Stephens

  • Mizuho raised the 2022E adjusted EPS estimate by +$0.40 and 2023E-2024E by +$0.30 following Q2:22 results.

  • Mizuho views this as a strong quarter across all segments for CI. Despite the improved outlook for adjusted EPS, operating income, and MLR, the analyst believes there is an upside to the guidance given the lower MLR trends.

  • They raised the price target to $330 (from $291) and reiterated the Buy rating.

  • RBC Capital writes that last year's pricing actions bear fruit with favorable medical cost trends in the commercial book and strong specialty performance, driving a solid beat and raise for Cigna.

  • Strong retention through the 2023 selling season and strategic investments lend incremental confidence in management's 10-13% long-term EPS growth target.

  • It raised the price target to $294 (from $272) with Sector perform rating.

  • Price Action: CI shares are up 0.27% at $280.85 during the market session on the last check Friday.

Latest Ratings for CI

Date

Firm

Action

From

To

Mar 2022

Mizuho

Maintains

Buy

Feb 2022

SVB Leerink

Maintains

Market Perform

Feb 2022

Morgan Stanley

Maintains

Equal-Weight

View More Analyst Ratings for CI

View the Latest Analyst Ratings

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