Global Payments upgraded before earnings, Cigna an Overweight: 4 big analyst picks

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since Friday: upgrades at Cigna, Global Payments , SkyWest , and CMS Energy.

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Cigna upgraded at two firms following Q4 beat

Cigna (NYSE:CI) received two analyst upgrades today following its Q4 earnings beat and an upward revision of its full-year profit forecast, which led to a 5% increase in its stock price on Friday, as reported in real-time on InvestingPro.

RBC Capital raised its rating on Cigna to Outperform from Sector Perform, adjusting its price target to $354.00 from $327.00.

Similarly, Cantor Fitzgerald upgraded Cigna to Overweight from Neutral, setting a new price target of $372.00, up from $334.00. The firm highlighted Cigna's strong positioning for potential earnings estimate increases in 2025/2026, primarily driven by Evernorth, and noted its lowest-risk exposure to the ongoing uncertainties in Medicare and the possibility of entering an insurance underwriting cycle.

Global Payments earns an upgrade ahead of Q4 earnings

Evercore ISI upgraded Global Payments (NYSE:GPN) to Outperform from In Line, significantly increasing the price target from $129.00 to $185.00 ahead of the upcoming Q4/23 earnings report on Feb 14.

The analysts’ optimism stems from anticipating a stronger financial performance in 2024, thanks to more favorable comparisons post the divestitures of the NetSpend and Gaming businesses, the realization of cost synergies from EVOP, and a strategic focus on high-growth, tech-enabled solutions.

The analysts expect these factors to contribute to upward revisions in 2024 and 2025 adjusted EPS consensus estimates and an expansion in forward multiples due to reduced capital intensity and improved FCF conversion.

Two more upgrades

TD Cowen upgraded SkyWest (NASDAQ:SKYW) to Outperform from Market Perform, with a price target of $68.00 (from $55.00). This adjustment follows SkyWest's reported Q4 results last week, which led to an 8% rise in the stock price on Friday.

SkyWest reported solid 4Q23 results. The company is seeing reduced pilot attrition and improving block hour production. It is also growing charter revenue through its SkyWest Charters group. They invested in Contour, a small airline that has ~30 aircraft, 200 pilots and an interline agreement with American Airlines (NASDAQ:AAL).

Guggenheim upgraded CMS Energy (NYSE:CMS) to Buy from Neutral with a price target of $64.00 (from $60.00) after the company’s reported its Q4 results and raised its quarterly dividend by 5.6%.

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