UBS Views Cigna (CI) as Top Choice in Healthcare Managed Care Sector

The Cigna Group (NYSE:CI) ranks among the stocks with low beta that can beat market volatility. UBS highlighted The Cigna Group (NYSE:CI) as its top choice in the Healthcare Facilities & Managed Care sector on September 23 and maintained its Buy rating on the company’s shares, with a price target of $390. According to the firm, The Cigna Group (NYSE:CI) is the largest Managed Care Organization that is least susceptible to the volatility in government businesses, where pressure is mounting.

UBS observes that Cigna’s long-term earnings growth trajectory is untouched as the company continues to buy back shares, recovers margin in its stop loss business, and seizes additional chances in specialty pharmacy.

Although there is an industry overhang associated with Pharmacy Benefit Management reform, UBS believes that any legislation that passes would not significantly affect Cigna’s earnings and might even act as a clearing event for the company’s shares.

The Cigna Group (NYSE:CI) specializes in providing insurance and associated services in the United States, such as pharmaceutical benefits, home delivery pharmacy, and specialty pharmacy distribution.

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