Cigna's Price Target Cut: Analysts Weigh In on the Stock's Prospects

Cantor Fitzgerald has lowered its price target for Cigna (CI) to $350 from $400, maintaining an Overweight rating on the shares. The analyst at Cantor is confident that Cigna can correct its stop-loss pricing throughout the year and is optimistic about Evernorth, a key segment of the company. However, the analyst acknowledges that the stop-loss troubles are not Cigna-specific, which may have contributed to the price target reduction.

Cigna's stock price has been volatile in recent months, with shares falling around 10% in early trading on February 1, 2025, following the company's fourth-quarter and full-year 2024 results. The company's earnings growth for 2024 (9%) and 2025 (at least 8%) fell short of management's previous guidance of at least 13% and 10% growth, respectively. This was primarily due to higher stop-loss medical costs, which cut into Cigna's medical insurance segment profits.



Analysts have been quick to weigh in on Cigna's prospects following the price target cut. While Cantor Fitzgerald remains optimistic about the company's long-term growth prospects, other analysts have expressed varying opinions. Here's a snapshot of some analyst views:

* Michael Wiederhorn of Oppenheimer maintains a Buy rating on Cigna, with a price target of $400. He believes that Cigna can address its stop-loss pricing issues and is confident in the company's long-term growth prospects.
* John Ransom of Raymond James reiterates a Strong Buy rating on Cigna, with a price target of $415. He is optimistic about the company's Evernorth segment and believes that Cigna can correct its stop-loss pricing throughout the year.
* Raj Kumar of Stephens & Co. maintains a Buy rating on Cigna, with a price target of $410. He is confident in the company's ability to grow its Evernorth segment and believes that Cigna can address its stop-loss pricing issues.



Despite the recent price target cut by Cantor Fitzgerald, the overall analyst sentiment remains largely positive. The average price target from 18 analysts is $382.39, with a high estimate of $438 and a low estimate of $339. This suggests that analysts generally have a bullish outlook on Cigna's stock performance.

In conclusion, while Cantor Fitzgerald has lowered its price target for Cigna due to short-term pricing issues and market sentiment, the broader analyst sentiment remains bullish on the company's long-term growth prospects. Cigna's strategic initiatives and positive financial trends support the projected 2025 adjusted income from operations of at least $7.9 billion, or at least $29.50 per share. The company's focus on building a sustainable model for healthcare by addressing areas that matter most to patients and clients positions it well for continued success in the dynamic healthcare environment.