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Cigna (CI) Gets Minor PT Cut from Piper Sandler as Firm Backs PBS Strategy

The Cigna Group (NYSE:CI) is included among the 13 Best Defensive Dividend Stocks for 2025.

On March 3, Piper Sandler lowered its price recommendation on The Cigna Group (NYSE:CI) to $370 from $374. It maintained an Overweight rating on the shares. The firm pointed to the company’s rebate-free pharmacy benefit services model as a key part of its strategy going forward. According to the analyst, the model positions Cigna to comply with the 2026 Consolidated Appropriations Act and meet the terms of its settlement with the Federal Trade Commission. The firm also believes the approach could help reshape public perception of pharmacy benefit managers. In Piper Sandler’s view, these changes reduce risk around the long-term growth outlook for the PBS business and support the case for a higher valuation multiple.

In a Reuters report published on March 3, Cigna also announced that long-time CEO David Cordani plans to retire, a move that caught some analysts off guard as the company transitions to a new business model. Cordani will step into the role of executive chair on July 1. He will be succeeded by Brian Evanko, 49, a longtime executive who currently serves as president and chief operating officer. Evanko has spent three decades at Cigna and oversees the company’s insurance segment, Cigna Healthcare, along with its health services unit, Evernorth.

Cigna is also shifting part of its business model. The company is moving some customers to a structure that removes after-market discounts, commonly known as rebates. Management said the change is expected to pressure margins over the next two years. Cordani, now 60, joined Cigna in 1991 and has led the company as CEO since 2009. During his tenure, the company acquired pharmacy benefits manager Express Scripts in a $54 billion deal in 2018. Last year, it also sold its Medicare Advantage business to Health Care Service Corporation.

The Cigna Group (NYSE:CI) operates as a global health company with two main growth platforms: Evernorth Health Services and Cigna Healthcare. Evernorth includes the Pharmacy Benefit Services and Specialty and Care Services segments, which provide coordinated health solutions aimed at improving how the healthcare system operates and helping people live healthier lives.

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.

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