UPDATE: BMO Capital Markets Reiterates Outperform Rating, Lowers PT on Cigna Corporation

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Cigna Corporation

, but slightly lowered its price target from $65.00 to $64.00. BMO Capital noted, “We are adjusting our numbers to more accurately reflect the impact of the run-off reinsurance business. Although the changes move our numbers, they do not affect our view of Cigna's fundamentals. In addition to cleaner accounting for VADBe in our EPS estimates, we have modestly reduced our assumptions around its revenues and raised its expense ratio. This should give a better view into its future profitability. In our revised model, we have also changed inputs for the Corporate segment. Revenues and expenses were cut to better match recent results. We believe a position in CI is still attractive and will fare well through this period of reform uncertainty. The company stands to gain from the ASO enrollment shift, as it is the best-in-class provider of this arrangement.” Cigna Corporation closed on Thursday at $54.17.