Cigna price target lowered to $370 from $378 at JPMorgan

JPMorgan analyst Lisa Gill lowered the firm’s price target on Cigna to $370 from $378 and keeps an Overweight rating on the shares. The firm believes the managed care group remains fundamentally well positioned coming out of Q4 but adjusted multiples and ratings across the sector to reflect valuations more in-line with historical levels. In addition, the near-term Medicare Advantage rate outlook is disappointing with the Centers for Medicare and Medicaid Services announcing a 2% preliminary rate cut next year versus the market’s expectation for an increase in the range of 0%-2%, the analyst tells investors in a research note.