Truist Boosts Cigna Price Target to $350 as Q4 Revenue Jumps 11%
Truist lifted Cigna's price target to $350 from $320 following Q4 results that showed adjusted revenue rose 11% to $275 billion and adjusted EPS climbed 9% to $29.84. Management highlighted a $7 billion FTC settlement, divestiture of its Medicare business, and a rebate-free pharmacy model launch to strengthen growth visibility.
1. Price Target Raised to $350
On February 17, Truist increased Cigna's price target to $350 from $320 and maintained a Buy rating after updating its financial model based on Q4 results and the company’s initial 2026 outlook.
2. Strong Q4 Financial Performance
Cigna delivered adjusted full-year revenue of $275 billion, an 11% year-over-year increase, while adjusted earnings per share reached $29.84, up 9% from the prior year, reflecting steady underlying growth.
3. Strategic Initiatives and Outlook
Management highlighted several strategic moves, including boosting investment in Shields Health Solutions, completing the divestiture of its Medicare business, settling FTC pharmacy benefit issues with a $7 billion customer relief agreement over 10 years, and launching a rebate-free pharmacy benefit model to enhance long-term growth visibility.