J.P. Morgan Maintains Rating, PT On CI

J.P. Morgan is maintaining its Overweight rating and its $55 price target on CIGNA Corp. (NYSE: CI) following meetings with the company's management.

In its report, J.P. Morgan writes, “We recently held meetings with management. Overall, still an emphasis on the global focus/nature of the CI business, while also specifically noting good traction in the core domestic health benefits segment (this 60% of earnings), with the 2012 large/jumbo account selling season entering final stages. Here the company sees considerably increased large employer focus this season on benefit designs which incorporate much higher levels of employee engagement and a view that this changing preference (or growing acceptance) plays well into their strengths. There also continues to be considerable attention that “disruptive” market changes – regulatory, competitive and heightened transparency – are creating opportunities for the company to move deeper into segments in which it currently has a minimal footprint, with much less at stake in terms of legacy earnings/share to protect. In short: likes its current positioning, still sees considerable growth potential, both domestic and international, and while understandably not definitive, somewhat downplaying the characterization of recent consolidation talk.”

CI closed yesterday at $49.22.