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CI: Massive Share Buyback Will Drive Future Earnings Upside Momentum

CI: Share Repurchase Momentum Will Drive Long-Term Shareholder Value Creation

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CI
AnalystConsensusTarget
Not Invested
Published 18 Jul 2024

Update shared on 15 Dec 2025

Fair value Decreased 0.64%
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Narrative Update on Cigna Group

Analysts have slightly lowered their price target on Cigna Group by approximately $2 to around $326 per share, reflecting modest tweaks to assumptions on long term growth, profitability, and valuation multiples, while maintaining a broadly constructive outlook.

What's in the News

  • Cigna Group reported that between July 1 and September 30, 2025, it repurchased no additional shares under its existing authorization, having already completed the buyback of about 133.5 million shares, or 41.09% of shares outstanding, for roughly $34.44 billion since the program was announced in December 2018 (company filing).
  • The company reaffirmed its outlook by issuing earnings guidance for 2026 and indicated expectations for continued EPS growth, signaling confidence in long term operating performance (company guidance).
  • Cigna will begin covering Cleerly LABS Advanced Plaque Analysis effective October 1, 2025, which will expand access to AI enabled coronary plaque imaging for more than 16 million Cigna members and contribute to over 61 million Americans now having coverage for AI based CT coronary plaque analysis through major payors and Medicare (Cleerly press release).

Valuation Changes

  • Fair Value Estimate: reduced slightly from approximately $328.35 to about $326.26 per share, implying a modestly lower intrinsic valuation.
  • Discount Rate: effectively unchanged at roughly 6.96 percent, indicating no meaningful shift in perceived risk or cost of capital.
  • Revenue Growth: increased slightly from about 5.34 percent to roughly 5.34 percent, reflecting a marginally more optimistic long term top line outlook.
  • Net Profit Margin: nudged higher from approximately 2.24 percent to about 2.24 percent, suggesting a small improvement in expected underlying profitability.
  • Future P/E: decreased modestly from around 14.22 times to about 14.12 times forward earnings, pointing to a slightly lower valuation multiple being applied.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.