Amazon.com Inc. has recently appointed Brad D. Smith, a former CEO of Intuit Inc. and current director at Humana Inc., to join its board of directors. This move has generated optimism about the company's future in the healthcare sector.
According to DA Davidson analyst Tom Forte, this appointment signifies Amazon's commitment to advancing its healthcare-related efforts. With Smith's background at Intuit, the company aims to leverage its technological expertise to explore opportunities in healthcare.
Forte predicts that there is a more than 10% chance that Amazon's healthcare initiatives will contribute to a 1 percentage point increase in revenue growth in 2016. While the company is involved in several healthcare initiatives, Forte believes that the pharmacy sector holds the most potential.
The analyst currently rates Amazon shares as a buy with a target price of $150. However, he also mentioned that in a scenario where the company is broken up due to regulatory interest, the stock could be valued as high as $193.
Amazon's decision to add a healthcare expert to its board demonstrates its dedication to expanding its presence in the healthcare industry. By capitalizing on its technological prowess, the company aims to make significant strides in this sector and unlock new growth opportunities.
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