Cigna (CI) Stock Forecast & Price Target

Cigna Group demonstrates a positive financial outlook, as indicated by a projected 7% year-over-year increase in pre-tax adjusted operating income for Cigna Healthcare to $4.175 billion in CY25 and a 5.8% rise to $7.405 billion for the Evernorth segment. The company's Medical Loss Ratio (MLR) is also on an upward trend, with an anticipated 300 basis point improvement in the Stop-Loss segment MLR to 91% in CY26, ultimately aiming for an 89% target in CY27. This growth is bolstered by significant client acquisitions and robust specialty volume growth, positioning Cigna favorably in the competitive landscape of health insurance and pharmacy benefit management.

Cigna Group has faced significant challenges, as evidenced by a 4Q24 consolidated earnings miss attributed to the elevated incidence of high-cost claimants in Stop-Loss, leading to a notable 15% shortfall against expectations for adjusted EPS. The company's total medical enrollment decreased by 3.2% year-over-year, which is indicative of declining membership, particularly within its Individual and Family Plans due to targeted pricing actions in certain regions. Additionally, despite winning key contracts such as one with Centene and maintaining a significant PBM contract with the Department of Defense, the overall financial outlook has been negatively impacted by consistent pressures in the Commercial ESI market, further amplifying concerns about growth prospects.