UPDATE: Deutsche Bank Raises PT to $71 on Cigna Corporation on Reinsurance Unit Disposal

Deutsche Bank reiterated its Buy rating on Cigna Corporation CI and raised the price target from $65.00 to $71.00. Deutsche Bank noted, "Since CI initially put its reinsurance operations in run-off in 2000, investors have told us that the stock should trade at a discount to peers due to the related EPS volatility and uncertainty around hard to quantify balance sheet risks. Since then several bull and bear markets have passed by and the VADBe and GMIB liabilities still remained on CI's balance sheet. It always seemed like Berkshire would be the natural partner to reinsure the esoteric risks associated with the run-off operations. While CI will clearly need to pay up as expected to dispose of these liabilities, we view this development as a significant positive catalyst for CI's valuation and reaffirm our Buy rating on the stock." Cigna Corporation closed at $58.35 on Monday.