CIGNA (CI) PT Raised to $163 at Citi

Citi raised its price target on CIGNA (NYSE: CI) to $163.00 (from $139.00) while maintaining a Buy rating.

Analyst Ralph Giacobbe comments "In our opinion, deal noise has been an overhang despite lower probability/expectation post the DOJ challenge. While we remain watchful of an ANTM appeal and potential drawn out scenario of CI having to continue the process to meet deal obligations, an adverse court ruling would largely squash expectation of a combination and allow investors to focus on Cigna’s ASO market positioning, fundamentals, and capital deployment optionality. To that end, CI’s strong balance sheet and significant financial flexibility is further strengthened by the $1.85B breakup fee and potential appetite to lever-up, creating $7-$14B of deployable capital. That said, we would expect a more measured approach by
mgmt versus what we perceive to be accelerated/aggressive investor expectations n-t."

See Ralph's comment on Anthem (NYSE: ANTM) from this morning here.

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