Bernstein Raises Price Target#
Bernstein SocGen Group has increased its price target for Cigna Group stock (NYSE:CI) from $358 to $371 while maintaining an Outperform rating. This adjustment reflects the company's strong financial performance and suggests that the stock is attractively valued compared to its growth potential.
Strong Earnings Report#
Cigna recently reported its first-quarter earnings for 2026, showing adjusted earnings per share (EPS) of $7.79, which surpassed analysts' expectations by 2.4%. The company's total revenues reached approximately $68.5 billion, exceeding forecasts by 3.44%. This positive performance aligns with a broader trend of optimism among analysts, with 12 analysts revising their earnings estimates upwards for the upcoming periods.
Growth in Specialty Pharmacy#
Cigna's Specialty Pharmacy segment, Evernorth, has been a key driver of growth, showcasing strong volume growth and margins of 4.2%. Revenue from Pharmacy Benefit Services grew by 11% year-over-year, attributed to a favorable drug mix. However, adjusted operating income saw a decline of 28% due to new client terms and increased technology spending.
Analyst Reactions#
Following the earnings report, several analysts adjusted their ratings on Cigna. TD Cowen reiterated a Buy rating with a price target of $338, while Guggenheim also maintained a Buy rating and raised its target to $338. Cantor Fitzgerald increased its target to $340, and Mizuho raised its target to $330, all reflecting confidence in Cigna's ongoing performance and growth potential.