NEW YORK, Aug. 2 /PRNewswire/ -- S&P Equity Research Services has upgraded its opinion on shares of CIGNA Corp. (NYSE: CI; $103) to "Buy" (4-STARS out of 5) from "Hold" (3-STARS). Second-quarter operating earnings per share of $2.17 vs. $1.72, before reserve development, was $0.22 above our estimate. We calculate that share buybacks accounted for $0.23 of EPS growth. Still, we are encouraged by the health care unit's earnings rise, enrollment retention, market expansion opportunities, and progress in the national accounts market for the 2007 selling season despite competition. We view positively the company's pricing discipline and medical and SG&A cost control. We have raised our 2006 EPS estimate by $0.25 to $8.75, our P/E-to-growth estimate to an above-peer 1.15X from 1.0X, and raised our target price by $19 to $121. Risks to our recommendation and target price include intensified competition, higher-than-expected growth of medical costs, adverse regulatory changes, and a weakened economy. Phillip Seligman Managed Health Care Equity Analyst Standard & Poor's Equity Research Services The analyst quoted above is a Standard & Poor's Equity Analyst. He has no affiliation with any company he covers. He has no ownership interest in any company he covers. Standard & Poor's other affiliates may provide services to the companies that are the subject of this report. About Standard & Poor's Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 7,500 employees, including wholly owned affiliates, located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/ About Standard & Poor's Equity Research Services As the world's largest producer of independent equity research, Standard & Poor's licenses its research to over 1,000 institutions for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor's team of 120 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/. The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non- public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at http://www.standardandpoors.com/. DATASOURCE: Standard & Poor's CONTACT: Edward Sweeney, Communications, Tel.: (212) 438-6634 Web site: http://www.standardandpoors.com/ http://www.equityresearch.standardandpoors.com/

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