The Cigna Group (CI): A Bull Case Theory

Yahoo

2 days ago

We came across a bullish thesis on The Cigna Group (CI) on Antonio Linares' Substack. In this article, we will summarize the bulls' thesis on CI. The Cigna Group (CI)'s share was trading at $312.68 as of 22nd May. CI's trailing and forward P/E were 17.43 and 10.65 respectively according to Yahoo Finance.
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Cigna's new deal with Eli Lilly and Novo Nordisk to offer capped prices for GLP-1 weight loss drugs may seem disruptive at first glance, particularly to players like Hims, but it reinforces the structural dynamics that benefit the company. As the fourth-largest pharmacy benefit manager (PBM) in the U.S., Cigna's concession reflects the intense competition between Lilly and Novo to scale their relatively undifferentiated GLP-1 offerings. While this specific deal may cap prices for GLP-1s, PBMs will likely offset this by inflating prices elsewhere, consistent with their broader business model that thrives on the complexity and pricing inefficiencies of the U.S. healthcare system.
For Hims, which isn't fundamentally a GLP-1 business but rather a vertically integrated healthcare platform, the overall inflationary environment driven by PBMs enhances its value proposition—offering lower-cost, high-efficiency solutions below copay. Hims has guided for $750 million in 2025 weight loss revenue, largely from oral alternatives and generic liraglutide, both significantly cheaper than branded injectables like Wegovy. Hims's platform, which continues to evolve with personalized care and efficiency gains, is uniquely positioned to address a broad array of health needs in a way that is difficult for traditional PBM-centered models to replicate.
The company's partnership with Novo and potential future deal with Lilly would further de-risk its growth. With a recent acquisition of a peptide manufacturing facility and a pipeline far beyond GLP-1s, Hims is building a scalable, cost-effective precision medicine platform. As the market remains fixated on GLP-1 narratives, Hims quietly compounds free cash flow and strategic value, offering investors an increasingly attractive long-term opportunity.
We have previously covered The Cigna Group (CI) in January 2025 wherein we summarized a bull thesis by Tsachy Mishal on twitter. Mishal named Cigna (CI) a top pick, citing its stable model and low valuation. Since then, the company has completed a $3.7B asset sale and is on track to repurchase up to 12% of its shares. With political risk around PBMs easing and strong buyback execution, Cigna remains undervalued and well-positioned for continued upside. As of May 2025, the stock has risen by 13.23%.
The Cigna Group (CI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held CI at the end of the fourth quarter which was 66 in the previous quarter. While we acknowledge the risk and potential of CI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.