Cigna upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded Cigna (CI) to Buy from Hold with a price target of $370, up from $355. The company announced the agreement to sell its Medicare Advantage, Supplemental Benefits, Part D, and CareAllies Business to HCSC for a total transaction value of $3.7B, in what can be a “value unlocking-transaction,” the analyst tells investors in a research note. The firm says the announcement “finally brings this story with multi-month deal headlines to an end.” Investors will likely continue to have concerns on whether the sale signals Cigna will make another run at Humana (HUM), Deutsche notes. The firm believes this scenario is extremely unlikely in 2024 and could be a 2025 event at the earliest.