Cigna Corp.’s international business will help the managed care company reach forecasted earnings growth over the next few years, The Associated Press reports, citing a Wedbush analyst.
The Philadelphia insurer with its claims headquarters in Bloomfield has an international business that generates higher margins than U.S. insurance and grows at a faster pace, Wedbush analyst Sarah James said in a research note.
Cigna management expects earnings to grow 10 percent to 13 percent over the next three to five years. That is slightly higher than the growth expectations of some competitors; WellPoint Inc. and Aetna Inc. expect 10 percent growth.
James raised her 12-month price target for the insurer’s stock to $47 from $45 and said she believes international business will make up 30 percent of Cigna’s earnings by 2015.
Cigna was down 13 cents to $43.44 in early Monday trading.
