Cigna (CI) Stock Closed Up After Price Target Raised at Leerink

NEW YORK (TheStreet) -- Shares of Cigna Corp. (CI) closed up 0.93% to $155.40 after Leerink earlier today increased its price target to $150 from $145 while maintaining its "outperform" rating.

Both Anthem (ANTM) and Aetna (AET) appear interested in acquiring Cigna, though Cigna was reported to have rejected a $175 per share offer from Anthem, Leerink noted. 

"Cigna is of strategic value to Anthem in our view, and our preliminary analysis indicates that the Anthem Blues by-laws requiring the combined entity to be over two-thirds Blue branded is a manageable hurdle for CI-ANTM (Cigna-Anthem)," Leerink analysts said. 

Aetna could also be a strategic buyer of Cigna, with potential teens accretion and supporting Cigna's ambition of running the combined company in Hartford, CT, Leerink added.

Cigna is a health services company that offers medical, dental, disability, life and accident insurance and related products and services in three segments: Global Health Care, Global Supplemental Benefits and Group Disability and Life.

Separately, TheStreet Ratings team rates CIGNA CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CIGNA CORP (CI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins."

If you liked this article you might like

Healthcare Management Stocks Look Too Pricey for Activists

The Stock That Crashed 25% Overnight Has a Lesson to Teach Us: Market Recon