A Citigroup analyst today downgraded shares of managed care company Cigna Corp. to “sell” from “hold,” despite the stock’s rally since November.
Analyst Charles Boorady said in a research note the stock has rebounded from a 52-week low it reached in November, but he downgraded it after finding no “reasonable basis” to raise his firm’s price target from $10 commensurate with the stock’s rally.
At 11 a.m., Cigna shares traded at $15.57, down 46 cents, or 2.9 percent.  On Nov. 21, its shares closed at $8.82.
Boorady expects Philadelphia-based Cigna, which has major operations in Bloomfield, to record earnings per share of $3.50 this year. His estimate falls below the company’s guidance of between $4 and $4.50 per share and the Wall Street consensus of $3.90.
Boorady said in his note he doesn’t expect Cigna to achieve expected synergies from its acquisition of Great-West Healthcare, a deal completed last year. He also expects investment income to suffer due to low interest rates. (AP)
