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Cigna’s Strategic Transition and Growth Prospects Justify Buy Rating

Cigna’s Strategic Transition and Growth Prospects Justify Buy Rating

TD Cowen analyst Charles Rhyee has maintained their bullish stance on CI stock, giving a Buy rating yesterday.

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Charles Rhyee has given his Buy rating due to a combination of factors, including Cigna’s introduction of a 2026 framework that outlines adjusted EPS growth and a high-end target growth for CI HC. Despite a slight decline in EHS adjusted pre-tax income, the company’s transition to a rebate-free model is seen as a strategic move to alleviate regulatory pressures.
Rhyee acknowledges that while the transition to the new model will span several years, potentially until 2028, the potential profitability of the new model makes it a worthwhile risk. The estimated adjusted EPS growth for 2026 and the projected growth in Specialty and Care Services further support the positive outlook, justifying the Buy rating for Cigna’s stock.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $300.00 price target.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CI in relation to earlier this year.

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