Cigna Group's (CI) Evernorth health-services unit recorded stronger-than-expected adoption of newer specialty generics in Q2, with use exceeding 80% for recent launches, UBS Securities said Friday in a report.
This was partly offset by softer pharmacy results as GLP-1 prescriptions moderated amid declining coverage levels and slower utilization growth, the report said.
Evernorth closed the 2026 selling season with retention above 97%, and early indicators for 2027 point to similarly strong levels, UBS said.
Cigna's new rebate-free Signature model is drawing client interest, and management remains confident the pharmacy business can return to 4% margins under the new structure, the report said.
UBS maintained its buy rating on Cigna stock and its $400 price target.
Price: $282.70, Change: $-4.96, Percent Change: -1.72%