According to a group of Citigroup analysts, Cigna is "one of the most compelling stocks and stories" they have seen across 20 years on the sell side.
The group of analysts feels that the health services company has the right goals coupled with a strong historical performance, a solid strategy, improved positioning, and a balanced growth outlook – while having a low valuation.
Analyst Ralph Giacobbe mentioned that Cigna is trading at a 27% discount to peers and 49% discount to the market.
Citigroup gave Cigna shares a “buy” rating. It set a $203 target price on the shares, which would be 11 times the 2020 estimate. The target indicates upside of 31% from Wednesday's close price.
However, Giacobbe did mention that the outlook is not without a few risks, such as a potential unexpected increase in healthcare-costs, heated competition from peers, the risks inherent in integrating Express Scripts, and general headline risks from the focus on drug pricing and the evolving pharmacy-benefit-manager model.