Cigna (CI) Stock Forecast & Price Target

Cigna Group is strategically positioned to benefit from the expanding biosimilars market, anticipated to reach $100 billion by 2030, thereby enhancing its growth prospects in the pharmaceutical domain. The company also aims to deliver significant cost savings, estimated in double digits on GLP-1 net cost development for its employer clients, contributing to improved financial performance. Furthermore, the build-out of Evernorth is expected to strengthen Cigna's resilience against economic downturns, as clients in those end markets demonstrate greater economic stability.

Cigna Group faces significant risks that contribute to a negative outlook, primarily stemming from potential inaccuracies in pricing and managing healthcare costs, along with prolonged regulatory scrutiny of pharmacy benefit managers (PBMs). Additionally, challenges such as sluggish biosimilar adoption and a lack of specialty drug penetration may threaten the growth of its Evernorth division, compounded by the risk of client losses and outmigration. Furthermore, management anticipates minimal client shifts or major adoption of new offerings due to employers' concerns over losing benefits critical for recruitment and retention in a rising unemployment environment.