Shares of Cigna Group (NYSE:CI) tanked in early trading on Friday, after the company reported its third-quarter results. Here are some key analyst takeaways:
- Guggenheim Securities analyst Jason Cassorla maintained a Buy rating, while cutting the price target from $361 to $347.
- Cantor Fitzgerald analyst Sarah James reaffirmed an Overweight rating and price target of $340.
Management raised their full-year adjusted earnings outlook by 15 cents per share to at least $30.60 per share, he added.
The company provided an early 2027 forecast, guiding to earnings of $33 per share, which allayed fears of flat growth despite headwinds in the PBM and Specialty & Care divisions, the analyst stated.
While the path to upside remains "a bit murky," Cigna has "executed well in this dynamic environment, its capital deployment engine remains flexible, and CI's baseline EPS is more than supported by harvesting efficiencies from its Accelerate to One initiative," he further wrote.
Cantor Fitzgerald: Although 2027 is a transition year, "stop-loss recapture & a strong selling season" give Cigna room for upside, James said. Management guided to more than 10% earnings growth in 2027, which the company may beat, she added.
The analyst noted that early discussions with clients are promising for 2028, with:
- Strong interest beginning to arrive in Evernorth PBS (Pharmacy Benefit Services)
- Demand for biosimilars for oncology and multiple sclerosis
- Savings from the Accelerate to One initiative.
- Around 70%-80% through automation, modernization, and talent effectiveness
- Remaining from vendors