Here's Why RBC Capital Raised Price Target On Cigna

Cigna Corp CI posted 1Q22 adjusted EPS well above expectations on enterprise-wide growth, with a particularly solid performance in specialty pharmacy and better than expected MCR on lower testing and treatment costs.
The company raised FY22 guidance on 1Q outperformance.
The analysts raised the price target to $272 from $235, with a Sector Perform rating.
The analysts write that Evernorth saw sustained momentum across its specialty pharmacy business lines as Accredo and CuraScript continued to support outsized growth in the specialty platform.
Management notes strong demand for Evernorth’s services among existing and new clients early in the 2023 selling season.
With management continuing to view medicare advantage (MA) as a sustainable long-term growth opportunity, RBC looks forward to specific strategies for rejuvenating the MA book at CI’s Investor Day in June.
Government membership decline was offset on the commercial side by solid growth in ASO membership.
Management expects the international life divestiture to close later in 2Q than initially anticipated, which pushes the timing of buybacks to later in the year.
Price Action: CI shares are down 1.70% at $262.36 during the market session on the last check Monday.

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