Cigna is the ‘cheapest stock in the group,’ says Jefferies

Jefferies analyst David Windley lowered his price target for Cigna to $244 from $273 following the close of the Express Scripts acquisition and keeps a Buy rating on the name. Cigna trades at the cheapest managed care price-to-earnings multiple at 11 times estimated 2019 earnings per share of $16.49 for the combined company, Windley tells investors in a research note. Further, he sees multiple expansion and upside to Cigna’s 2021 earnings per share target of $20-$21 driving long-term stock performance. Windley calls Cigna the “cheapest stock in the group” and expects consensus estimates to rise following yesterday’s merger close.
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