Cigna (CI) Stock Forecast & Price Target

Cigna Group is strategically positioned to capitalize on the growing biosimilar market, projected to reach $100 billion by 2030, which could significantly enhance its revenue streams. The company is also expected to generate double-digit savings in GLP-1 net cost development for its employer clients, adding to its appeal among businesses seeking cost-effective health benefits. Furthermore, the expansion of Evernorth is anticipated to provide economic resilience, helping to mitigate potential earnings headwinds during a recession by serving clients in relatively stable end markets.

Cigna Group faces several fundamental risks that contribute to a negative outlook, including challenges in accurately pricing and managing healthcare cost trends, which could significantly affect profitability. Prolonged regulatory scrutiny on pharmacy benefit managers (PBMs) presents additional uncertainties that might hinder operational efficiency and growth, particularly for its Evernorth division. Furthermore, potential client losses and outmigration, coupled with rising unemployment impacting commercial membership, raise concerns about the company's ability to maintain its market position and financial stability.