Cowen analyst Charles Rhyee raised the price target on CIGNA (NYSE: CI) to $264.00 (from $253.00) while maintaining a Outperform rating. Rhyee believes that there is long-term value to owning PBM and health insurance assets and believes that investors are beginning to see the potential opportunity in the combination.

Cowen believes the pending acquisition of ESRX positions the company to succeed in the evolving U.S. healthcare landscape. On a stand-alone basis, CI has carved out a strong position in the market, particularly ASO, and recent results demonstrate its ability to deliver strong results.