Bank of America Securities Maintains a Buy on The Cigna Group (CI), Sets a $378 PT

The Cigna Group (NYSE:CI) is one of the best low volatility large cap stocks to invest in. Bank of America Securities analyst Kevin Fischbeck maintained a Buy rating on The Cigna Group (NYSE:CI) on November 21, setting a price target of $378.

The Cigna Group (CI): Oversold on the Charts, Solid in the Fundamentals

The analyst based the rating on the company’s overall financial outlook and strategic positioning, stating that the implications of The Cigna Group’s (NYSE:CI) transition to a rebate-free model for its Pharmacy Benefit Manager (PBM) business are being misunderstood by the market. He acknowledged that while concerns about potential margin compression exist, the model provides The Cigna Group (NYSE:CI) with a distinct position compared to its competitors, which makes it an attractive investment opportunity.

Fischbeck further supported the optimistic rating with the company’s strong free cash flow yield and potential for stock buybacks, adding that the upcoming strategic disclosures and financial results are likely to offer increased clarity regarding the company while also catalyzing stock performance.

The analyst also highlighted that the current trading price of The Cigna Group (NYSE:CI) points towards considerable upside potential. The stock’s median price target of $278.83 implies an upside of 23.70% from current levels.

The Cigna Group (NYSE:CI) provides global health services and operates through the following segments: Evernorth Health Services, Cigna Healthcare, Other Operations, and Corporate.

While we acknowledge the potential of CI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CI and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.