J.P. Morgan Maintains Rating, PT On CI

J.P. Morgan is maintaining its Overweight rating and its $55 price target on CIGNA Corp. CI following meetings with the company's management. In its report, J.P. Morgan writes, “We recently held meetings with management. Overall, still an emphasis on the global focus/nature of the CI business, while also specifically noting good traction in the core domestic health benefits segment (this 60% of earnings), with the 2012 large/jumbo account selling season entering final stages. Here the company sees considerably increased large employer focus this season on benefit designs which incorporate much higher levels of employee engagement and a view that this changing preference (or growing acceptance) plays well into their strengths. There also continues to be considerable attention that “disruptive” market changes – regulatory, competitive and heightened transparency – are creating opportunities for the company to move deeper into segments in which it currently has a minimal footprint, with much less at stake in terms of legacy earnings/share to protect. In short: likes its current positioning, still sees considerable growth potential, both domestic and international, and while understandably not definitive, somewhat downplaying the characterization of recent consolidation talk.” CI closed yesterday at $49.22.