Cigna (CI): Valuation Check After Launching a Rebate‑Free Pharmacy Benefit Model
Cigna Group (CI) is drawing fresh attention after rolling out a rebate free pharmacy benefit model that aims to simplify drug pricing, cut upfront costs, and potentially reshape how pharmacy benefit managers operate.
See our latest analysis for Cigna Group.
Investors seem to be slowly warming to the story, with a 1 day share price return of 3.68 percent helping to offset a 90 day share price return of minus 10.07 percent, while the 5 year total shareholder return of 46.87 percent still points to solid long term wealth creation despite more muted recent performance.
If this kind of healthcare innovation has your attention, it could be a good moment to explore other opportunities across healthcare stocks for fresh ideas beyond Cigna.
With analysts lifting price targets and Cigna trading at a notable discount to their estimates, is the market overlooking the earnings power of its new model, or is it already pricing in the next leg of growth?
Most Popular Narrative: 17.1% Undervalued
With Cigna Group last closing at $272.26 against a narrative fair value of $328.35, the most followed storyline implies meaningful upside from here.
The analysts have a consensus price target of $369.133 for Cigna Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $428.0, and the most bearish reporting a price target of just $300.0.
Want to see what kind of revenue climb, margin lift, and shrinking share count could justify that gap? Curious how those moving parts reshape future earnings power?
Result: Fair Value of $328.35 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upside hinges on Evernorth’s PBM navigating mounting regulatory scrutiny and on Cigna managing affordability pressures that could squeeze margins and slow growth.
Find out about the key risks to this Cigna Group narrative.
Build Your Own Cigna Group Narrative
If you would rather dig into the numbers yourself and follow your own angle, you can build a personalized view in minutes, Do it your way.
A great starting point for your Cigna Group research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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