Cigna is poised to grow its international and commercial health coverage, and the fundamental parts of the health insurer's business are becoming stronger, according to BMO Capital.
Analyst Dave Shove raised his 12-month price target on the stock to $65 from $60 after the Bloomfield, Conn., company met with analysts Friday at its annual investor day presentation.
Cigna has a broader product portfolio than some of its competitors. It operates health care, group disability and life segments in the United States. The insurer also has an international segment that sells individual insurance in several countries and operates an expatriate business that covers people living outside their home countries.
Much of the insurer's domestic health coverage involves policies it administers for employers who pay the medical bills instead of coverage where Cigna actually provides the insurance. Shove said this business will continue to be a "core strength" for Cigna. He also said in a research note the company's international business holds growth potential, and its operating expenses are falling.
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