J.P. Morgan Raises Price Target On Cigna After Earnings (CI)

J.P. Morgan Chase & Co. raised its price target on CIGNA Corporation (NYSE: CI) to $46 from $45, and is keeping its Overweight rating after the company reported better than expected earnings. It has an Overweight rating on shares.In a note to clients, J.P. Morgan writes, "VADBe reserve additions well previewed, while that doesn't mean we like the recurring event. These coming in as a $0.12/share drag, while having been flagged on the 2Q earnings call and at that time the potential addition sized at $10-50mm(came in at $34mm). We'd all like to see this component walled-off, isolated, or somehow disposed of so we can stop worrying that this long-tail business will be nothing more than a drain on capital for decades to come. Importantly, we believe that would be worth something meaningful to the valuation, but at the very least, theaddition was not a surprise."Shares of CI gained $1.47 to close at $36.85, a gain of 4.1%.