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Investing.com - UBS maintained its Buy rating on Cigna Group (NYSE:CI) stock with a price target of $390.00, highlighting the company as its top pick in the Healthcare Facilities & Managed Care sector.
The investment firm views Cigna as the most insulated among major Managed Care Organizations from volatility in government businesses, where increasing pressure has emerged. UBS notes that Cigna’s long-term earnings growth trajectory remains intact as the company recovers margin within its stop loss business, continues share buybacks, and captures further opportunities in specialty pharmacy. With annual revenue of $262.02 billion and expected net income growth, Cigna demonstrates strong financial fundamentals.
While Pharmacy Benefit Management reform represents an industry overhang, UBS believes legislation likely to pass would not materially impact Cigna’s earnings and could potentially serve as a clearing event for the stock. Get deeper insights into Cigna’s financial health and growth potential with InvestingPro’s comprehensive research report, available along with 10+ additional ProTips.
UBS points out that Cigna’s current valuation implies 2026 estimated earnings per share of $24.50, which falls below the firm’s own 2026 EPS estimate of $32.75 for the company.
The investment bank expects Cigna’s multiple to expand relative to peers as the company demonstrates steady earnings growth in the coming periods.
In other recent news, Cigna Corporation reported its second-quarter 2025 financial results, surpassing earnings estimates with an adjusted earnings per share of $7.20, compared to the projected $7.16. The company’s revenue also exceeded expectations, totaling $67.2 billion against the forecasted $62.66 billion. Despite these positive results, Cigna’s stock experienced a decline, influenced by broader market concerns and specific investor reactions. Additionally, Cigna is expanding its specialty pharmacy operations through a $3.5 billion investment in Shields Health Solutions, facilitated by its Evernorth division. Analysts from Bernstein SocGen Group reiterated a Market Perform rating with a price target of $346 on Cigna shares. Meanwhile, Cantor Fitzgerald maintained its Overweight rating on Cigna, setting a price target of $365, following the company’s exit from an Illinois county. Guggenheim lowered its price target for Cigna to $350 from $388, citing sector pressures, while maintaining a Buy rating. In other developments, Cantor Fitzgerald reiterated its Overweight rating and $440 price target on UnitedHealth Group after finalizing 2026 Marketplace rates in 15 states.
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