UnitedHealth, Cigna shares fall after Raymond James downgrades, citing tripledemic and coverage issues
Shares of UnitedHealth Group Inc.
fell 0.5% and Cigna Corp.
slumped 2.3% in premarket buying and selling Monday, after Raymond James analyst John Ransom downgraded the well being insurers, citing issues that the “tripledemic” of the flu, RSV (respiratory syncytial virus) and COVID might result in higher-than-expected medical loss ratios (MLRs). Ransom can also be involved about potential unfavorable outcomes from upcoming coverage catalysts, together with Medicare Benefit Superior Discover and danger adjustment knowledge validation (RADV) closing rule. “[T]he common view that the mixture of largely very best elements in 2022 (decrease medical development, higher-than-expected MA charge enhance and rotation into U.S.-centric defensive shares) are unlikely to be replicated,” Ransom wrote in a be aware to shoppers. He minimize his ranking on each corporations to outperform from robust purchase and saved his inventory worth targets at $615 for UnitedHealth and at $370 for Cigna. UnitedHealth’s inventory has gained 5.6% and Cigna shares have run up 39.0% yr so far, whereas the SPDR Well being Care Choose Sector ETF
has misplaced 4.5% and the Dow Jones Industrial Common
has declined 7.1%.