Jefferies Cuts Price Target on Cigna Corp. (CI) Following 3Q

November 4, 2016 9:44 AM EDT
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Price: $141.97 -1.93%

Rating Summary:
    17 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Jefferies maintained a Buy rating on CIGNA (NYSE: CI), and cut the price target to $149.00 (from $153.00), following the company's 3Q earnings report. Management was emphatic about strong 2017 EPS growth after this year's 8% decline. EPS guidance was unchanged. However, Healthcare earnings guidance was lowered by $60mm. CI also ranged capital deployment flexibility at $7-14bn in late-17.

Analyst David Windley commented, "Management sounded resolute in returning to "very strong performance" in '17. By outlining capital resources under a no-merger scenario, management seems to message its intent to deploy. Life claims volume has abated, Disability workflows have normalized, and the Medicare remediation seems close to its end. Our '17 EPS rises slightly on higher MA profits - lower remediation costs offset lower membership."

For an analyst ratings summary and ratings history on CIGNA click here. For more ratings news on CIGNA click here.

Shares of CIGNA closed at $117.31 yesterday.

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