UBS Maintains Buy Rating on Cigna (CI) Stock

On Friday, May 23, UBS analyst AJ Rice reaffirmed a “Buy” rating on The Cigna Group (NYSE:CI) with a price target of $390.

Rice shared his views after a recent investor event at the Evernorth Innovation Lab, which was held together with the company’s management team.

The Cigna Group’s (NYSE:CI) strategic departure from the Medicare Advantage (MA) business was highlighted. The company’s management showed strong confidence regarding the current mix of businesses, which includes commercial healthcare, pharmacy benefit management, and specialty drug and other care services.

A healthcare team discussing strategies for patient advocacy programs.

Rice expressed confidence that The Cigna Group (NYSE:CI) can continue to achieve its goal of low-double-digit earnings growth. This positive outlook is in part because the company is strategically moving away from the difficulties linked to government-related healthcare programs. The analyst’s report emphasized the company’s diverse business portfolio as a key strength.

A key topic at the event was The Cigna Group’s (NYSE:CI) GLP1 program. Rice discussed this program, which is for clients who do not currently cover GLP1 medications for weight management. This represents about half of Evernorth’s clients. The program aims to make GLP1 treatments more accessible by sharing costs fairly between the plan sponsor and the patients, while also offering a lower net cost of these drugs for all clients.

According to Rice, this program will help both clients and patients by offering more accessible treatment options and managing costs effectively.

The Cigna Group (NYSE:CI) is a global health company that operates through two divisions, Cigna Healthcare and Evernorth Health Services. The company has sales capabilities in over 30 markets and jurisdictions.

While we acknowledge the potential of CI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CI and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds.

Disclosure: None.