Cigna (CI) Stock Coverage Reinstated With 'Outperform' Rating
NEW YORK (TheStreet) -- Cigna (CI) - Get Report stock coverage was reinstated with an "outperform" rating and $149 price target at Oppenheimer in a note released earlier today.
Shares "look attractive" at current prices even if the company's agreement to be purchased by Anthem (ANTM) in a $54 billion deal falls through, the firm contended.
As a standalone company, Cigna has "several things going for it," such as $2 billion in non-regulated cash that could be used to purchase assets from Humana (HUM) or Aetna (AET) or repurchase stock, Oppenheimer noted.
The stock's current price leaves investors with a low floor and high upside if a deal does occur, Oppenheimer added.
If the deal does fall through, Anthem would owe Cigna as much as $1.85 billion in break-up fees, the firm pointed out.
Cigna stock nonetheless closed down 1.01% to $127 on Thursday after reports that antitrust regulators will meet to discuss "significant concerns" surrounding Humana's planned merger with Aetna weighed on health services companies.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Cigna's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.