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Cigna downgraded to Hold on competitive concerns at Edward Jones

Edward Jones analyst John Boylan last night downgraded Cigna (CI) to Hold from Buy. The analyst has increasing concerns of competition in the pharmacy benefits manager industry after a competitor to Cigna lost part of the Blue Shield of California PBM contract to a group of companies that included Amazon.com (AMZN). The firm estimates Cigna’s PBM business generated two-thirds of its profits last year. As such, Edward Jones views the stock as appropriately valued.

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