Jefferies Reiterates Buy Rating on Cigna Corp. (CI)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on Cigna Corp.

; it has a $45.00 price target on the stock. The analysts cited two key drivers to their rating: 1) diversification and 2) international growth. They noted that CI derives only 20% of its profits from international operations, but the company intends to ramp that up over the next few years. The analysts also noted that Cigna's profitability is well-spread across four segments, providing outlets for growth in 2011 when reform implementation hits commercial plans. The analysts said, “Our $45 price target assumes a 9.6x multiple on our 2011 EPS estimate of $4.67. Cigna's funding issues will keep the stock at a discount to the 10.3x target multiple of its peers. We believe the combination of earnings growth and protection against reform risks can support multiple expansion.”