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Investing.com - Cigna Corporation (NYSE:CI), an $81.5 billion healthcare giant with annual revenues exceeding $262 billion, is expanding its specialty pharmacy operations through a $3.5 billion investment in Shields Health Solutions, the company announced Monday. According to InvestingPro data, Cigna maintains a "GREAT" financial health score, positioning it well for strategic investments.
The investment will be made through Cigna’s Evernorth division using preferred stock, according to Bernstein SocGen Group, which reiterated its Market Perform rating and $346.00 price target on Cigna shares.
Cigna indicated the transaction is not expected to materially impact its 2025 adjusted earnings per share guidance of at least $26.60, as stated in the company’s press release.
Shields Health Solutions operates as a specialty pharmacy management company, positioning it between Cigna’s existing Accredo home delivery and CuraScript specialty distribution businesses that serve physician offices and similar facilities.
Bernstein SocGen views the investment positively, noting it increases Cigna’s concentration in specialty pharmacy, a business that "has attractive growth prospects" and should command "a valuation which is higher than the overall CI valuation" despite potential policy headwinds.
In other recent news, Cigna Corp reported its second-quarter 2025 financial results, surpassing earnings expectations with an adjusted earnings per share of $7.20, slightly above the forecast of $7.16. Revenue also exceeded projections, reaching $67.2 billion compared to the expected $62.66 billion. Despite these positive results, the company’s stock experienced a decline, reflecting broader market concerns and specific investor reactions to Cigna’s operational updates and future guidance. Additionally, Guggenheim lowered its price target for Cigna to $350.00 from $388.00, citing sector pressures, while maintaining a Buy rating on the stock. This adjustment followed a notable decline in Cigna shares since the earnings release, despite the company reiterating its 2025 guidance. Meanwhile, Cantor Fitzgerald reiterated its Overweight rating on Cigna, setting a price target of $365.00, maintaining a positive outlook after Cigna’s exit from an Illinois county. These developments highlight the mixed sentiment among analysts regarding Cigna’s future performance.
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