BofA/Merrill Lynch Reiterates Buy on Amazon (AMZN) Following Announced Health Care Partenership
BofA/Merrill Lynch reiterated a Buy rating and $1460.00 price target on Amazon.com (NASDAQ: AMZN) following the company's announced partnership with Berkshire Hathaway and JPMorgan Chase & Co. with the goal of reducing health care costs over time. The companies state that this entity is in the early planning stages and acknowledge that the lack of health care expertise is part advantage and part disadvantage. In fact, the press release noted that the companies do not have a clear answer how to lower costs, but that the new company will be focused on technology solutions.
Given the new business between Amazon, Berkshire, and JP Morgan is set up as a nonprofit, analyst Justin Post thinks that the benefits to Amazon are likely many years out and are likely focused more on controlling its own health care costs.
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Shares of Amazon.com closed at $1417.68 yesterday.