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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on Cigna (NYSE:CI) with a price target of $365.00 following the company’s second-quarter 2025 results. The target represents significant upside potential for the $76 billion healthcare giant, which according to InvestingPro analysis is currently undervalued.
The healthcare giant reported quarterly results in line with expectations, with growth primarily driven by its Evernorth division. With impressive revenue growth of 24% over the last twelve months and an overall financial health score of "GREAT" from InvestingPro, Cigna’s lack of government exposure appears to be improving investor sentiment toward the stock.
The $365 price target represents a 2026 price-to-earnings multiple of 11.0x based on Cantor Fitzgerald’s 2026 earnings per share estimate of $33.06. This target multiple reflects a 9% discount to the historical 10-year average P/E ratio, accounting for remaining uncertainty from political factors. The stock currently trades at a P/E ratio of 16.28x and offers a dividend yield of 2.03%.
Cantor Fitzgerald identified several risks to its price target, including larger-than-expected employer give-backs based on contractual arrangements and low utilization, higher start-up costs from the CNC contract, and potential challenges in further penetrating the commercial book with Evernorth products.
Additional risk factors mentioned include the company’s ability to realize investment returns on VillageMD and other Cigna venture investments.
In other recent news, The Cigna Group announced a quarterly cash dividend of $1.51 per share, payable on September 18, 2025, to shareholders of record as of September 4, 2025. RBC Capital maintained its Outperform rating and $371 price target for Cigna, citing that commercial utilization trends are aligning with company expectations. Additionally, Cigna Group joined other major insurers in pledging to simplify prior authorization processes for medications and medical services, following discussions with U.S. health officials.
Cigna Healthcare, a division of The Cigna Group, introduced new AI-powered digital tools to enhance customer experience on the myCigna member portal. These tools include features like a virtual assistant, personalized provider matching, and real-time cost tracking. These developments are part of Cigna’s ongoing efforts to improve health insurance interactions. The company continues to expand its capabilities and services globally, serving approximately 183 million customer relationships.
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