UNH - Unpopular Cigna May Become Very Rewarding

• Strong free cash flow, secular tailwinds, and low valuations make Cigna financially attractive.
• Returns in about 1 - 1.5 years are expected in the range of 40-50% with subsequent long-term compounding in line with historic 12-14%.
• Leverage will be reduced before the year-end and is not significant as compared with cash flows.
• The probability of enacting a single-payer system is estimated to be in low digit percentage over the next 8 years.

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