BofA Securities flagged rising cost pressures, unpredictable swing factors and heightened uncertainty around earnings estimates for managed care organizations, noting that Medicare poses greater risk than Medicaid and that reported EPS may not fully reflect underlying earnings power.

Despite limited near-term visibility, the firm sees meaningful long-term upside, arguing that most managed care organizations are currently earning below their true potential.

• Cigna Group stock is holding steady today. What’s next for CI stock?

Analyst Kevin Fischbeck wrote Cigna Group (NYSE:CI) offers a clean exposure to commercial health insurance, the only segment consistently performing well, alongside a scaled pharmaceutical platform.

Through its pharmacy benefit manager and specialty pharmacy businesses, Cigna is effectively leveraged to rising drug spend, including obesity therapies, biosimilars, and gene and cell therapies, without needing to bet on individual products.

While 2026 marks a reset year for the Pharmacy Benefits Manager model, the company is positioned to deliver 10%–15% ...