The Cigna Group

CI: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$368.00	Rymdk	Kdzjqsbsy

Cigna Earnings: Solid Trends Boost Outlook and Fair Value, Despite Regulatory Scrutiny on PBM

Julie Utterback

May 5, 2023

Narrow-moat Cigna turned in solid first-quarter results, and the firm mildly increased its 2023 outlook. Considering these solid trends and cash flow generated since our last valuation change, we are boosting our fair value estimate 7% to $344 per share. Shares remain moderately undervalued, probably reflecting some of the renewed regulatory risks to its pharmacy benefit management, or PBM, operations. However, we think those risks will be manageable over time.

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