Wedbush Raises Price Target on CIGNA (CI), Buybacks Look to Be in Near Term
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Price: $282.56 +1.64%
Rating Summary:
23 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
23 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Neutral rating on shares of CIGNA (NYSE: CI) while raising its price target by $1 to $52.
The firm is raising its Q2 and 2011 EPS estimates by $0.02 and $0.03 due to lower than expected utilization rates, but notes that it doesn't benefit from it as much as other companies do due to its low exposure to commercial risk and because many of its risk contracts are experience-rated. Wedbush cut its 2011 MA expectation from 45 thousand to 37 thousand and its PDP from 552 thousand to 541 thousand.
The company’s capital deployment strategy is based on funding current operations and pension obligations, M&A capturing new capabilities and scale, and share repurchases. The firm believes that buybacks may be the choice that CI picks to increase its earnings.
An analyst from Wedbush comments, "We look for developments in the International Segment including updates on the market size and growth potential of the new global individual product. We are also watching for an update on effort to bring SG&A more in line with peers, insight into pricing decisions/market exits in response to healthcare reform and commentary on capital deployment plans following stabilization of reserves."
For more ratings news on CIGNA click here and for the rating history of CIGNA click here.
Shares of CIGNA closed at $51.12 yesterday.
The firm is raising its Q2 and 2011 EPS estimates by $0.02 and $0.03 due to lower than expected utilization rates, but notes that it doesn't benefit from it as much as other companies do due to its low exposure to commercial risk and because many of its risk contracts are experience-rated. Wedbush cut its 2011 MA expectation from 45 thousand to 37 thousand and its PDP from 552 thousand to 541 thousand.
The company’s capital deployment strategy is based on funding current operations and pension obligations, M&A capturing new capabilities and scale, and share repurchases. The firm believes that buybacks may be the choice that CI picks to increase its earnings.
An analyst from Wedbush comments, "We look for developments in the International Segment including updates on the market size and growth potential of the new global individual product. We are also watching for an update on effort to bring SG&A more in line with peers, insight into pricing decisions/market exits in response to healthcare reform and commentary on capital deployment plans following stabilization of reserves."
For more ratings news on CIGNA click here and for the rating history of CIGNA click here.
Shares of CIGNA closed at $51.12 yesterday.
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