Citigroup Upgrades Cigna to 'In-Line'
Citigroup upgraded Cigna (CI ) to in-line from underperform.
Analyst Charles Boorady says Cigna hired an advisor to explore the sale of its pension business. He expects a quick sale because it's a valued property, but sees risk of disruption if key fund managers and sales people leave in the interim.
He raised the prive target to $55; the target p-e of 10 reflects an expected pre-tax sale for $3 billion. Boorady thinks Cigna management can focus on its core healthcare business, and increased take-out potential, if an exploration of the pension sale throws the entire company into play.