Stock Update (NYSE:CI): Calif. insurance commissioner urges U.S. to block Anthem-Cigna deal

[Reuters] – California’s insurance commissioner on Thursday urged the U.S. Department of Justice to block health insurer Anthem Inc’s acquisition of Cigna Corp, saying he is concerned it will raise premiums in the state. Dave Jones, who as insurance commissioner in California does not have authority to approve the deal, said he believes his recommendation will hold weight with U.S. antitrust regulators examining the acquisition. Anthem announced plans to buy Cigna last summer. Read more on this. Cigna Corp. (CI) , valued at $33.01B, opened this morning at $126.31. During today’s session, CI traded between $124.50 to $128.99 with its 52-week range being $123.54 to $170.68. Cigna (CI) shares are currently priced at 13.64x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 8.92x earnings multiple for the same period. And for dividend hunters, the company pays shareholders $0.04 per share annually in dividends, yielding 0.03%. According to a consensus of 17 analysts, the earnings estimate of $2.40 per share would be $0.15 worse than the year-ago quarter and a $0.21 sequential decrease. Investors should also note that the full-year EPS estimate of $9.28 is a $0.62 better when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $9.97 Billion. If reported, that would be a 5.28% increase over the year-ago quarter. In terms of ratings, Jefferies upgraded CI from Hold to Buy (Jan 8, 2016). Previously, Citigroup Initiated CI at to Buy. Given all the information above, we should disclose to readers that the average price target is $164.67, which is 30.37% above than it opened this morning. See more in (NYSE:CI) Similar Articles: Stock Update: Cigna Corp (NYSE:CI) – Cigna and Integrated Independent Physicians Network, LLC Collaborate to Improve Health and Lower Costs in Florida Stock Update (NYSE:CI): Cigna says Anthem deal could close in 2017, not 2016-filing Company Update (NYSE:CI): U.S. hospital group warns of Blue Cross dominance if Anthem buys Cigna