Jefferies says Cigna acquisition of Humana ‘seems plausible’ near $420 per share

Jefferies lowered the firm’s price target on Humana to $381 from $411 and keeps a Buy rating on the shares, noting that since Cigna (CI) abandoned its pursuit of Humana in December of 2023, Cigna shares are up 38% while Humana shares are down 34%. Given the shift in share prices, Cigna acquiring Humana now looks accretive under a wide range of outcomes, contends the analyst, who thinks a Cigna acquisition of Humana “seems plausible” for about $420 per share. The firm’s revised price target on Humana shares is based on a blended 25%/75% average of its takeout price estimate of $420 versus a standalone value of $368 based on its revised FY25 EPS estimate of $19.67.